Hoyt Corporation Agreed to the Following Terms in Order to Acquire

question 5

Multiple Choice

Hoyt Corporation agreed to the following terms in order to acquire the net assets of Brown Company on January 1, 2011: (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:

Type I Error

An error that occurs in hypothesis testing when a true null hypothesis is incorrectly rejected.

Type II Error

Occurs when a false null hypothesis is not rejected, meaning a real effect or difference is missed in a study or test.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, typically to be tested against an alternative hypothesis.

Acquitting

The legal act of freeing an individual from a charge of an offence by a verdict of not guilty.