Beta Company Acquired 100 Percent of the Voting Common Shares

question 30

Multiple Choice

Beta Company acquired 100 percent of the voting common shares of Standard Video Corporation, its bitter rival, by issuing bonds with a par value and fair value of $150,000. Immediately prior to the acquisition, Beta reported total assets of $500,000, liabilities of $280,000, and stockholders' equity of $220,000. At that date, Standard Video reported total assets of $400,000, liabilities of $250,000, and stockholders' equity of $150,000. Included in Standard's liabilities was an account payable to Beta in the amount of $20,000, which Beta included in its accounts receivable.
-Based on the preceding information,what amount of total assets did Beta report in its balance sheet immediately after the acquisition?

• A) $500,000
• B) $650,000
• C) $750,000
• D) $900,000

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