Ask Question
25 May, 08:10

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. $900,00

+4
Answers (1)
  1. 25 May, 11:28
    0
    The amount of total assets did Beta report in its balance sheet immediately after the acquisition is $650,000. The right answer is B

    Explanation:

    In order to calculate the amount of total assets did Beta report in its balance sheet immediately after the acquisition we would have to make the following calculation:

    amount of total assets did Beta report in its balance sheet=Total assets reported by beta+Fair value of the investment

    According to the given dа ta:

    Total assets reported by beta=$500,000

    Fair value of the investment=$150,000

    Therefore, amount of total assets did Beta report in its balance sheet=$500,000+$150,000

    amount of total assets did Beta report in its balance sheet=$650,000

    The amount of total assets did Beta report in its balance sheet immediately after the acquisition is $650,000
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Beta Company acquired 100 percent of the voting common shares of Standard Video Corporation, its bitter rival, by issuing bonds with a par ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers