Prior to Being United in a Business Combination, Botkins Inc

question 82

Multiple Choice

Prior to being united in a business combination, Botkins Inc. and Volkerson Corp. had the following stockholders' equity figures: Botkins issued 56,000 new shares of its common stock valued at $3.25 per share for all of the outstanding stock of Volkerson.
Assume that Botkins acquired Volkerson on January 1, 2012. Immediately afterwards, what is consolidated Common Stock?

• A) $456,000.
• B) $402,000.
• C) $274,000.
• D) $276,000.
• E) $330,000.

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Definitions:

Social Psychology

The scientific study of how individuals think, influence, and relate to one another within a societal context.

Schemas

Cognitive frameworks or structures that help individuals organize and interpret information, based on prior experience or knowledge.

Encode

To convert information or an idea into a particular form, often for communication or processing.

Stereotypes

Widely held but fixed and oversimplified images or ideas of a particular type of person or thing, often used to generalize about groups of people.