Prime Company Acquired 100 Percent of the Voting Common Shares

question 9

Multiple Choice

Prime Company acquired 100 percent of the voting common shares of Standard Video Corporation,its bitter rival,by issuing bonds with a par value and fair value of $150,000.Immediately prior to the acquisition,Prime reported total assets of $500,000,liabilities of $280,000,and stockholders' equity of $220,000.At that date,Standard Video reported total assets of $400,000,liabilities of $250,000,and stockholders' equity of $150,000.Included in Standard's liabilities was an account payable to Prime in the amount of $20,000,which Prime included in its accounts receivable.
-Based on the preceding information,what amount of stockholders' equity was reported in the consolidated balance sheet immediately after acquisition?

• A)$220,000
• B)$150,000
• C)$370,000
• D)$350,000

Recognize the implications of changes in production targets on cost allocation and product pricing.

Identify the impact of over-applied and under-applied overhead on financial statements.

Understand how changes in production technologies or methods might affect the cost allocation process.

Understand the complexity and uncertainty involved in scientific evidence about global warming and its economic implications.

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Definitions:

Bystander Effect

The concept within social psychology that describes how individuals are less prone to stepping in to help a victim when they are surrounded by other people.

Research Method

A systematic process to study and investigate phenomena, acquire new knowledge, or correct and integrate previous knowledge.

Psychologists And Psychiatrists

Professionals in the field of mental health where psychologists focus on psychotherapy and treating emotional and mental suffering with behavioral intervention, while psychiatrists are medical doctors who can prescribe medications.

Cognitive Psychology

The branch of psychology that studies mental processes including how people think, perceive, remember, and learn.