Prime Company Acquired 100 Percent of the Voting Common Shares

question 52

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 liabilities was reported in the consolidated balance sheet immediately after acquisition?

• A)$500,000
• B)$530,000
• C)$280,000
• D)$660,000

Recognize the importance of having insurance coverage despite current health status.

Identify the eligibility and coverage criteria for government health insurance programs.

Understand strategies to reduce personal medical costs.

Identify different types of health insurance coverage and their benefits.

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Definitions:

Owner's Equity

The total value of a business owned by its owners, calculated as the business's total assets minus its total liabilities.

Business Ownership

Refers to the control over a business enterprise, determining the management and profit allocation.

Sole Proprietorship

A business structure where a single individual owns, manages, and is personally responsible for all aspects of the business.

Corporation

A legal entity that is separate from its owners, offering limited liability protection to its shareholders, and having the ability to raise funds by selling stock.