Polk Issues Common Stock to Acquire All the Assets of the Sam

question 4

Multiple Choice

Polk issues common stock to acquire all the assets of the Sam Company on January 1, 2016.There is a contingent share agreement, which states that if the income of the Sam Division exceeds a certain level during 2016 and 2017, additional shares will be issued on January 1, 2018.The impact of issuing the additional shares is to

• A)​increase the price assigned to fixed assets.
• B)​have no effect on asset values, but to reassign the amounts assigned to equity accounts.
• C)​reduce retained earnings.
• D)​record additional goodwill.

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Definitions:

Gender Identity

An individual’s personal sense of their own gender, which may or may not correspond with their birth sex.

Gender Constancy

The understanding that one's gender identity is fixed and constant, regardless of external changes or societal expectations.

Sense Of Identity

The understanding or perception of oneself as a distinct individual, with a stable set of attributes, qualities, and aspirations.

Dependence

A state in which an individual relies on something or someone for support or to function normally.