Pickup Company Acquired 100 Percent of the Voting Common Shares

question 29

Multiple Choice

Pickup Company acquired 100 percent of the voting common shares of Sedan Corporation by issuing bonds with a par value and fair value of $200,000.Immediately prior to the acquisition,Pickup reported total assets of $600,000,liabilities of $370,000,and stockholders' equity of $230,000.At that date,Sedan reported total assets of $500,000,liabilities of $300,000,and stockholders' equity of $200,000.Included in Sedan's liabilities was an account payable to Pickup in the amount of $50,000,which Pickup 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)$200,000
• B)$230,000
• C)$380,000
• D)$430,000

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Definitions:

Unsorted Portion

The segment of a collection that has not yet been ordered according to a specified sorting algorithm.

Smallest Element

In the context of data structures and algorithms, it refers to finding the minimum value in a collection of items.

Sequential Search

Sequential search is a method for finding a particular value in a list by checking each element in order until the desired element is found or the list ends.

Sorted

Refers to the arrangement of elements in a data structure in a specific order, typically in ascending or descending numerical or alphabetical order.