Pickup Company Acquired 100 Percent of the Voting Common Shares

question 29

Multiple Choice

Pickup Company acquired 100 percent of the voting common shares of Sedan Corporation by issuing bonds with a par value and fair value of $200,000.Immediately prior to the acquisition,Pickup reported total assets of $600,000,liabilities of $370,000,and stockholders' equity of $230,000.At that date,Sedan reported total assets of $500,000,liabilities of $300,000,and stockholders' equity of $200,000.Included in Sedan's liabilities was an account payable to Pickup in the amount of $50,000,which Pickup included in its accounts receivable.
-Based on the preceding information,what amount of stockholders' equity was reported in the consolidated balance sheet immediately after acquisition?

• A)$200,000
• B)$230,000
• C)$380,000
• D)$430,000

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Definitions:

Similarity Of Members

The degree to which individuals in a group or team share common characteristics, experiences, or backgrounds.

Social Capital

The networks, relationships, and norms that facilitate collective action and contribute to the social and economic effectiveness of a society or group.

Strong Relationships

Connections between individuals or entities characterized by trust, mutual respect, and often a long history of working or being together.

Group Attractiveness

The appeal of a group to its members, which can influence cohesion, the desire to join or remain part of the group, and member satisfaction.