Prime Company Acquired 100 Percent of the Voting Common Shares

question 51

Multiple Choice

Prime Company acquired 100 percent of the voting common shares of Standard Video Corporation,its bitter rival,by issuing bonds with a par value and fair value of $150,000.Immediately prior to the acquisition,Prime reported total assets of $500,000,liabilities of $280,000,and stockholders' equity of $220,000.At that date,Standard Video reported total assets of $400,000,liabilities of $250,000,and stockholders' equity of $150,000.Included in Standard's liabilities was an account payable to Prime in the amount of $20,000,which Prime included in its accounts receivable.
-Based on the preceding information,what amount of total assets did Prime report in its separate balance sheet immediately after the acquisition before any consolidation with Standard Video?

• A)$500,000
• B)$650,000
• C)$750,000
• D)$900,000

---

Definitions:

USB Flash Drive

A portable storage device that uses flash memory and is pluggable into a computer's USB port.

Research Paper

A detailed document prepared after thorough investigation and analysis of a specific topic or issue, often used in academic settings.

Mobile App

A software application developed specifically for use on small, wireless computing devices such as smartphones and tablets.

Email Program

Software that enables users to send, receive, and organize electronic mail messages.