On December 31,20X9,Pluto Company Acquired 100 Percent of Saturn Corporation's

question 47

Multiple Choice

On December 31,20X9,Pluto Company acquired 100 percent of Saturn Corporation's common stock for $300,000.Balance sheet information for Saturn just prior to the acquisition is given here:
At the date of the business combination,Saturn's net assets and liabilities approximated fair value except for inventory,which had a fair value of $60,000,land which had a fair value of $125,000,and buildings and equipment (net) ,which had a fair value of $250,000.
-Based on the information provided,what amount of inventory will be included in the consolidated balance sheet immediately following the acquisition?

• A)$60,000
• B)$75,000
• C)$15,000
• D)$45,000

Distinguish between the balance sheet presentation of accounts receivable and the associated debt instruments.

Understand and apply the principles of notes receivable discounting and their impact on financial statements.

Identify and correct errors in the recording of cash transactions and the preparation of bank reconciliations.

Understand the treatment of noninterest-bearing notes receivable, including the computation of interest revenue and discount amortization.

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Definitions:

Synaptic Connections

The points of contact where two neurons communicate with each other, transmitting signals through the release of neurotransmitters.

Brain's Growth

The process of physiological and structural development of the brain, often most rapidly occurring in childhood and adolescence.

Neuronal Pruning

The process by which extra neurons and synaptic connections are eliminated in order to increase the efficiency of neuronal transmissions.

Cell Death

The process by which a cell ceases to function and is eliminated, which can be a natural part of development or result from disease.