On January 1,2019,total Assets for Wininger Technologies Were $136,000;on December

question 86

Multiple Choice

On January 1,2019,total assets for Wininger Technologies were $136,000;on December 31,2019,total assets were $157,000.On January 1,2019,total liabilities were $110,000;on December 31,2019,total liabilities were $118,000.What is the amount of the change and the direction of the change in Wininger Technologies' stockholders' equity for 2019?

• A)decrease of $13,000
• B)increase of $13,000
• C)increase of $29,000
• D)decrease of $29,000

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Definitions:

Pre-acquisition Earnings

Earnings accumulated by a company prior to being acquired by another entity.

Retained Earnings

The portion of net income left over for a business after it has paid out dividends to its shareholders.

Acquisition Value

Acquisition Value is the total cost incurred to acquire an asset, including the purchase price and all related expenses.

Acquired Net Assets

The total assets purchased from a company during an acquisition minus the liabilities assumed in the process.