Cheers Acquired 100% of Tapp's Shares for $144,000

question 18

Multiple Choice

$\begin{array}{|l|r|r|r}\hline& \text { Cheers Co } & \text { Tapp Ltd } & \underline{\text { Tapp Ltd }} \\&\text { Book Value } & \text { Book Value } & \underline{\text { Fair Value }} \\\hline\text { Current assets } & \$ 512,000 & \$ 62,400 & \$ 65,600 \\\hline \text { Net capital assets } & \underline{448,000} & \underline{97,600} & \underline{110,400} \\\hline & \$ \underline{960,000} & \$ \underline{160,000} & \\\hline \text { Current liabilities } & \$ 96,000 & \$ 12,800 & 12,800 \\\hline \text { Long-term debt } & 288,000 & 35,200 & 40,000 \\\hline \text { Share capital } & 320,000 & 64,000 & \\\hline \text { Retained earnings } & \underline{256,000} & \underline{48,000} & \\\hline & \$ \underline{\underline{960,000}} & \$ \underline{160,000} & \\\hline\end{array}$ Cheers acquired 100% of Tapp's shares for $144,000. The condensed statements of financial position for Cheers and Tapp are given above, as well as the fair values of Tapp's assets and liabilities on the acquisition date. On Cheers's consolidated statement of financial position at the acquisition date, what is the total shareholders' equity?

• A)$576,000
• B)$624,000
• C)$688,000
• D)$11,888,000

Discuss the socio-political structure of Aegean societies as inferred from their art and architecture.

Examine the interaction between Aegean cultures and their neighbors through trade, warfare, and artistic influence.

Understand the concept and implications of dying intestate and the importance of having a valid will.

Recognize the significance of estate planning and its components, including wills and trusts.

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Definitions:

International Trade Theory

encompasses the concepts and principles explaining the exchange of goods, services, and capital across national borders, focusing on patterns, benefits, and effects of trade.

Produces At

The specific point or condition under which production occurs, focusing on the level of output and the resources used.

Low Cost

Refers to products or services that are offered at a minimal financial expense, making them accessible to a wider range of consumers.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than another.