Prior to Being United in a Business Combination, Botkins Inc

question 93

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, 2010. At what amount did Botkins record the investment in Volkerson?

• A) $56,000.
• B) $182,000.
• C) $209,000.
• D) $261,000.
• E) $312,000.

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