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:

Generalized Anxiety Disorder

A mental health condition characterized by persistent and excessive worry about various aspects of daily life, beyond what might be considered proportionate to the actual risk.

Irrational Assumptions

Beliefs that are not based on logic or reason, often leading to unrealistic expectations and distorted perceptions.

Ellis's Technique

A cognitive-behavioral therapy method developed by Albert Ellis, focusing on identifying and changing irrational beliefs.

Performance Anxiety

The fear of performing inadequately and a related tension experienced during sex.