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

question 70

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.
-Chapel Hill Company had common stock of $350,000 and retained earnings of $490,000. Blue Town Inc. had common stock of $700,000 and retained earnings of $980,000. On January 1, 2011, Blue Town issued 34,000 shares of common stock with a $12 par value and a $35 fair value for all of Chapel Hill Company's outstanding common stock. This combination was accounted for as an acquisition. Immediately after the combination, what was the consolidated net assets?

• A) $2,520,000.
• B) $1,190,000.
• C) $1,680,000.
• D) $2,870,000.
• E) $2,030,000.

---

Definitions:

Tokens

Symbols or physical objects that represent or signify something else, often with perceived value or importance.

Performance Pressure

The stress experienced when an individual feels they must meet certain standards or expectations, often in professional, academic, or social contexts.

Token

A symbolic representation or a tangible proof or reminder of an event, quality, or feeling.

Coworkers

Individuals who work together in the same organization or on the same project, but not necessarily holding the same rank.