Presented Below Is the Balance Sheet of Houser Company at January

question 55

Multiple Choice

Presented below is the balance sheet of Houser Company at January 1,2015:
$\begin{array}{ll}\text { Cash } & \$ 100 \\\text { Net Fixed Assets } & 400 \\\text { Total Assets } & \$500\end{array}$
$\begin{array}{ll}\text { Accounts Payable } & \$ 20 \\\text { Long-term Bonds Payable } & 220 \\\text { Stockholders' Equity } & \underline{260} \\\text { Total Liabilities and Stockholders' Equity } & \$ 500\end{array}$
The balance sheet of Maury Company at January 1,2015 is below:
$\begin{array}{ll}\text { Cash } & \$ 400 \\\text { Net Fixed Assets } &{380} \\\text { Total Assets } &{\$ 780}\end{array}$
$\begin{array}{ll}\text { Accounts Payable } & \$ 120 \\\text { Long-term Bonds Payable } & 280 \\\text { Stockholders' Equity } & \underline{380} \\\text { Total Liabilities and Stockholders' Equity } & \$ 780\end{array}$
On January 1,2015,Maury Company acquired 100 percent of the outstanding common stock of Houser Company for $260 cash.The book value and fair value of Houser's assets and liabilities were equal.What is the amount of Total Assets on the consolidated balance sheet immediately after the acquisition of Houser Company's stock? (Assume elimination entries are completed.)

• A) $0
• B) $780
• C) $1,020
• D) $1,280

Understand the distinctive characteristics and mechanisms of different economic systems including capitalism, socialism, and communism.

Grasp the role and impact of government interventions in the economy, including taxation, regulation, and provision of public goods and services.

Comprehend the basic principles of supply, demand, and the price mechanism in determining the allocation of resources and goods.

Identify the concepts of market failure including externalities, monopolies, and public goods.

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Definitions:

No Competition

A market condition or business scenario where a company faces little to no competition in its industry or for its products.

McClelland's Three Needs Theory

A motivational theory that suggests individuals are driven by three primary needs: the need for achievement, the need for affiliation, and the need for power.

Management Styles

The various strategies and approaches used by leaders to direct, motivate, and plan the activities of their team members.

Power

The ability or capacity of an individual or group to influence or control the actions, behaviors, and opinions of others.