Alpha Company Acquired 100 Percent of the Voting Common Shares

question 43

Multiple Choice

Alpha Company acquired 100 percent of the voting common shares of Gamma Corporation by issuing bonds with a par value and fair value of $200,000. Immediately prior to the acquisition, Alpha reported total assets of $600,000, liabilities of $370,000, and stockholders' equity of $230,000. At that date, Gamma reported total assets of $500,000, liabilities of $300,000, and stockholders' equity of $200,000. Included in Gamma's liabilities was an account payable to Alpha in the amount of $50,000, which Alpha included in its accounts receivable.
-Based on the preceding information,what amount of total assets was reported in the consolidated balance sheet immediately after acquisition?

• A) $600,000
• B) $800,000
• C) $1,050,000
• D) $1,150,0000

Recognize the dynamics and challenges of caregiving for the elderly.

Understand the importance of Instrumental Activities of Daily Living (IADLs) in promoting self-sufficiency among the elderly.

Differentiate between various types of elderly care and living arrangements, including assisted living.

Recognize what constitutes Activities of Daily Living (ADLs) and their significance in elder care.

---

Definitions:

Norms of Business

The accepted standards and practices that guide behavior in the business world.

Government Takeover

The acquisition of control over a company or sector by the government, potentially involving nationalization or requisition of private assets.

Per-Unit Costs

The expense incurred to produce, acquire, or sell one unit of a product or service, used in calculating profitability and pricing strategies.

Fixed Costs

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance.