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

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Definitions:

Nonparametric Tests

Statistical tests that do not assume the data come from a particular distribution, often used when dealing with ordinal data or when the normality assumption is violated.

Parametric Tests

Statistical tests based on assumptions about the population distribution from which the sample is drawn, typically involving parameters like mean and standard deviation.

Normal Approximation

A method used to estimate the shape of a binomial distribution using a normal distribution when the sample size is large.

Sign Test

A non-parametric test used to determine if there is a statistically significant difference between paired or matched samples by examining the signs of differences without assuming any particular distribution.