Pail,IncHolds 100 Percent of the Common Stock of Shovel Company,an

question 36

Multiple Choice

Pail,Inc.holds 100 percent of the common stock of Shovel Company,an investment acquired for $680,000.Immediately following the combination,Pail's net assets have a book value of $1,150,000 and a fair value of $1,390,000.The book value and the fair value of Shovel's net assets on the date of combination are $400,000 and $550,000,respectively.Immediately following the combination,a consolidated balance sheet is prepared.
-Based on the information given above,what will be the amount of net assets reported in the consolidated balance sheet,prepared immediately following the combination?

• A)$1,150,000
• B)$1,550,000
• C)$1,700,000
• D)$1,830,000

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Definitions:

Cultural Clashes

Conflicts arising from differences in values, norms, or behaviors between individuals or groups from different cultures.

Adaptive Culture

An organizational culture characterized by flexibility, customer focus, and an ability to change in response to external conditions.

Customer Service

The assistance and support provided by a company to those people who buy or use its products or services.

Deculturation

The process of losing or diminishing certain aspects of one's original culture, often as a result of contact with another culture.