Lea Company Acquired All of Tenzing Corporation's Stock on January

question 11

Multiple Choice

Lea Company acquired all of Tenzing Corporation's stock on January 1,2006 for $150,000 cash.On December 31,2008,the trial balances of the two companies were as follows:
Tenzing Corporation reported retained earnings of $75,000 at the date of acquisition.The difference between the acquisition price and underlying book value is assigned to buildings and equipment with a remaining economic life of five years from the date of acquisition.At December 31,2008,Tenzing owed Lea $4,000 for services provided.

-Based on the preceding information,what amount will be reported as total assets in the consolidated balance sheet for 2008?

• A)$666,000
• B)$747,000
• C)$651,000
• D)$946,000

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Definitions:

Incarcerate

To confine or imprison someone, typically as a legal punishment for a crime.

Imprisonment

Imprisonment is the state of being confined in jail or prison as a consequence of committing a crime or legal offense.

Mass Incarceration

The substantial and increasing rates of imprisonment, particularly affecting marginalized communities, often critiqued for systemic inequities.

Justice Reinvestment

A policy approach that reallocates resources from the prison system to community-based initiatives to prevent offending and reoffending.