Ponti Company Purchased the Net Assets of the Sorri Company

question 39

Multiple Choice

Ponti Company purchased the net assets of the Sorri Company for $800,000.The book value of the net assets of Sorri Company were as follows on the acquisition date:
$$\begin{array} { l r } \text { Cash } & \$ 50,000 \\\text { Inventory } & 150,000 \\\text { Land } & 150,000 \\\text { Building (net) } & 400,000 \\\text { Liabilities } & ( 200,000 ) \\\quad \text { Net assets } & \$ 550,000 \\\end{array}$$ The market values were as follows: Inventory, $160,000; Land, $170,000; Building, $450,000.The excess purchase price is allocated to goodwill.On the consolidated statement of cash flows, what is the amount that will appear as cash applied to investing as a result of this purchase?

• A)$800,000
• B)$720,000
• C)$750,000
• D)$670,000

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Definitions:

Third-Wave

Refers to the third-generation therapies that combine traditional behavior therapy with mindfulness and acceptance strategies, such as Dialectical Behavior Therapy.

Psychotherapies

A broad range of therapies aimed at treating emotional and psychological disorders through verbal and psychological techniques.

Cognitive-Behavior Therapies

A group of psychotherapies that treat problems by modifying dysfunctional emotions, behaviors, and thoughts.

Third Wave

Describes the third generation of behavioral and cognitive psychotherapies that incorporate mindfulness and acceptance strategies, aiming at greater psychological flexibility.