Hoyt Corporation Agreed to the Following Terms in Order to Acquire

question 79

Multiple Choice

Hoyt Corporation agreed to the following terms in order to acquire the net assets of Brown Company on January 1, 2013:
(1) ) To issue 400 shares of common stock ($10 par) with a fair value of $45 per share.
(2) ) To assume Brown's liabilities which have a fair value of $1,500.
On the date of acquisition, the consideration transferred for Hoyt's acquisition of Brown would be

• A) $18,000.
• B) $16,500.
• C) $20,000.
• D) $18,500.
• E) $19,500.

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Definitions:

Community of Interests

A group of individuals or organizations sharing common objectives or concerns, especially in social, professional, or economic spheres.

Functional Integration

The process of ensuring that different aspects of a business or organization work together efficiently to achieve a common goal.

Union Election

A formal process in which workers vote to decide whether to be represented by a labor union in negotiations with their employer.

Managers and Supervisors

Individuals within an organization responsible for overseeing the work of employees, making decisions, and ensuring that goals are met.