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:

Practicality

The extent to which something can be applied or used in a real-world setting.

Painstakingly

With great care and thoroughness, paying close attention to every detail.

Inappropriate

Unsuitable or not fitting the context, often referring to behavior, language, or actions that are not proper or acceptable in a given situation.

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Observations that are reliable and accurately represent the phenomenon being studied.