Fact Pattern 40-1A

question 45

Multiple Choice

Fact Pattern 40-1A
Cherry Grove Apartments, Inc., merges with Dutch Elm Realty, Inc. Only Dutch Elm remains.
-Refer to Fact Pattern 40-1A. Cherry Grove owed money to Eager Beaver Repair Service and other creditors. Af?ter the merger, Dutch Elm must pay

• A) all of Cherry Grove's debts.
• B) half of Cherry Grove's debts.
• C) none of Cherry Grove's debts.
• D) only debts that Cherry Grove incurred after a merger was proposed.

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Definitions:

Capital Account

An account on a nation's balance of payments that records transactions involving the acquisition or disposal of assets.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Personal Use

Personal use denotes utilizing an asset or service for one's own personal needs instead of for business or commercial activities.