REFERENCE: Ref.02_01 Bullen Inc.assumed 100% Control Over Vicker Inc.on January 1,20X1.The Book

question 2

Multiple Choice

REFERENCE: Ref.02_01
Bullen Inc.assumed 100% control over Vicker Inc.on January 1,20X1.The book value and fair value of Vicker's accounts on that date (prior to creating the combination) follow,along with the book value of Bullen's accounts:

-Assume that Bullen issued preferred stock with a par value of $240,000 and a fair value of $500,000 for all of the outstanding shares of Vicker in a business combination (which is not a pooling of interests) .What will be the balance in the consolidated Inventory and Land accounts?

• A)$440,000,$496,000.
• B)$440,000,$520,000.
• C)$425,000,$505,000.
• D)$402,000,$520,000.
• E)$427,000,$510,000.

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Definitions:

Mega-

A prefix indicating a factor of one million, or large size.

Milli-

A prefix in the metric system denoting a factor of one thousandth (10^-3).

Pseudocyesis

A condition in which a person believes they are pregnant and exhibits some pregnancy symptoms, but no actual pregnancy exists.

False Pregnancy

A condition in which a person believes they are pregnant and may even exhibit pregnancy symptoms, but is not actually pregnant.