Beta Company Acquired 100 Percent of the Voting Common Shares

question 30

Multiple Choice

Beta Company acquired 100 percent of the voting common shares of Standard Video Corporation, its bitter rival, by issuing bonds with a par value and fair value of $150,000. Immediately prior to the acquisition, Beta reported total assets of $500,000, liabilities of $280,000, and stockholders' equity of $220,000. At that date, Standard Video reported total assets of $400,000, liabilities of $250,000, and stockholders' equity of $150,000. Included in Standard's liabilities was an account payable to Beta in the amount of $20,000, which Beta included in its accounts receivable.
-Based on the preceding information,what amount of total assets did Beta report in its balance sheet immediately after the acquisition?

• A) $500,000
• B) $650,000
• C) $750,000
• D) $900,000

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Definitions:

Storming

A phase in group development characterized by conflict and competition as team members clarify their roles and expectations.

Process Gains

Factors that contribute to team effectiveness.

Synergy

The concept that the total amount of work produced by a team is greater than the amount of work produced by individual members working independently.

Sequential Interdependence

A work process situation where the output of one task becomes the input for the next task, requiring coordination and timing between tasks.