Plant Company Acquired All of Sprout Corporation's Stock on January

question 46

Multiple Choice

Plant Company acquired all of Sprout Corporation's stock on January 1,20X6 for $150,000 cash.On December 31,20X8,the trial balances of the two companies were as follows:
Sprout Corporation reported retained earnings of $75,000 at the date of acquisition.The difference between the acquisition price and underlying book value is assigned to buildings and equipment with a remaining economic life of five years from the date of acquisition.At December 31,20X8,Sprout owed Plant $4,000 for services provided.
-Based on the preceding information,what amount will be reported as total assets in the consolidated balance sheet for 20X8?

• A)$666,000
• B)$747,000
• C)$651,000
• D)$946,000

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Definitions:

Iodine-Potassium-Iodide

An aqueous solution made of iodine and potassium iodide used as a chemical indicator and antiseptic.

Amylase Activity

The process by which the enzyme amylase breaks down starches into simpler sugars, a key step in carbohydrate digestion.

Starch

is a carbohydrate consisting of a large number of glucose units joined together, serving as a key energy source in many plants and diets.

Enzyme Catalyzes

Refers to the acceleration of a biochemical reaction by a protein enzyme.