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:

Division Profits

The earnings generated from a specific department or segment within a larger organization.

Profit Centers

Segments or divisions within a company that are directly responsible for generating a significant portion of the company's profits.

Division Profits

The earnings attributive to a specific division or branch of a larger company, often used to assess the performance of that segment.

Profit Centers

Profit centers are segments, branches, or divisions of a company that are treated as a separate business, responsible for generating their own revenues and profits.