Rugby, Inc

question 33

Multiple Choice

Rugby, Inc.issues 20,000 shares of $10 par value common stock with a market value of $15 each for Soccer Company.Rugby, Inc.pays related acquisition costs of $50,000.The total fair value of net assets acquired from Soccer Company is $450,000.Which of the following is true related to recording the purchase and related costs:​

• A)​Debit a loss for $150,000 on the acquisition of the business
• B)​Debit goodwill for $250,000 above par value on the acquisition of the business
• C)​Credit a gain for $150,000 on the acquisition of the business and capitalize the $55,000 of acquisition costs
• D)​Credit a gain for $150,000 on the acquisition of the business and expense the acquisition costs.

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Definitions:

Dorsal Root Ganglion

Collection of sensory neuron cell bodies within the dorsal root of a spinal nerve; also called spinal ganglion.

Multipolar Motor Neurons

Neurons that have one axon and multiple dendrites, allowing them to transmit signals from the central nervous system to muscles, stimulating movement.

Pseudo-Unipolar Sensory Neurons

Neurons that have a single process extending from the cell body that divides into two branches, functioning in the transmission of sensory signals.

Meninges

Protective membranes that cover the brain and spinal cord, comprising the dura mater, arachnoid mater, and pia mater.