REFERENCE: Ref.02_05 Carnes Has the Following Account Balances as of May 1,2000

question 66

Multiple Choice

REFERENCE: Ref.02_05
Carnes has the following account balances as of May 1,2000 before a pooling of interests transaction takes place. The fair value of Carnes' Land and Buildings are $650,000 and $550,000,respectively.On May 1,2000,Riley Company issues 30,000 shares of its $10 par value ($25 fair value) common stock in exchange for all of the shares of Carnes' common stock.
-On May 1,2000,what value is assigned to the investment account?

• A)$300,000.
• B)$750,000.
• C)$800,000.
• D)$1,100,000.
• E)$1,300,000.

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Definitions:

Dish Soap

A cleaning product used to wash dishes, cut through grease, and sanitize kitchenware.

Income

Earnings acquired, frequently on a steady basis, through employment or investing activities.

Consumer Equilibrium

The point at which the quantity of goods and services a consumer chooses to buy equates to the maximum satisfaction or utility for their budget.

Budget Constraint

The limitation on the consumption bundles that a consumer can afford based on their income and the prices of goods.