Figure:
Prior to Being United in a Business Combination, Botkins

question 78

Multiple Choice

Figure:
Prior to being united in a business combination, Botkins Inc. and Volkerson Corp. had the following stockholders' equity figures: $\begin{array}{lrrrr} & {\text { Botkins }} & & \text { Volkerson } \\\text { Common stock (\$1 par value) } & \$ 220,000 & & \$ 54,000 \\\text { Additional paid-in capital } & 110,000 & & 25,000 \\\text { Retained earnings } & 360,000 & & 130,000\end{array}$ 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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Definitions:

Diagnosis

The identification of the nature and cause of an illness or problem through examination of symptoms and tests.

Psychological Disorder

A mental condition characterized by significant dysfunction in an individual's cognitions, emotions, or behaviors that reflects a disturbance in psychological, biological, or developmental processes.

Symptoms

Physical or psychological signs indicating the presence of a condition or disease.

Diagnosis

The identification of the nature and cause of a disease, condition, or problem, often through analysis of symptoms and tests.