REFERENCE: Ref.02_02 Prior to Being United in a Business Combination,Botkins Inc.and Volkerson

question 76

Multiple Choice

REFERENCE: Ref.02_02
Prior to being united in a business combination,Botkins Inc.and Volkerson Corp.had the following stockholders' equity figures: Botkins issued 56,000 new shares of its common stock valued at $3.25 per share for all of the outstanding stock of Volkerson.
-Assume that Botkins acquired Volkerson as a purchase combination.Immediately afterwards,what are consolidated Additional Paid-In Capital and Retained Earnings,respectively?

• A)$133,000 and $360,000.
• B)$236,000 and $360,000.
• C)$130,000 and $360,000.
• D)$236,000 and $490,000.
• E)$133,000 and $490,000.

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Definitions:

Income Mobility

The ability of an individual or family to move up or down the economic ladder within a society over time.

Higher Income Groupings

Refers to classifications of individuals or households that earn above a certain threshold of income, often compared within a broader economic context.

Lower Income Groupings

classifications of individuals or families that earn relatively less income compared to the median or average levels within a society.

Income Inequality

The unequal distribution of household or individual income across the various participants in an economy, leading to social and economic disparities.