Question

Company A released financial statements for year end 2021. The financial statements included a note of...

Company A released financial statements for year end 2021. The financial statements included a note of a significant event. The note stated, "During the year we acquired all the net assets of company B. This event is reflected in the presented financial statements." Based on this information, what type of business combination occurred on the date these two companies combined?  

A)Statuatory Merger

B)Statuatory Consolidation

C)Statuatory Acquisition

D)Hostile Takeover

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

C) Statuatory Acquisition is the correct answer.

A merger is the condition when two separate entities combine forces to create a new, joint organization. Here No new entity is created.

A statutory acquisition refers to the takeover of one entity by another. Which has happened in this case.

Statutory consolidation is the situation, where both of the merging entities are terminated and replaced by a successor organization. which is not applicable in this case.

A Hostile takeover is the acquisition done through directly approaching shareholdrs of the target company. Which is also not the case.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The note about debt included with the financial statements of FDL Company for the year ended...
The note about debt included with the financial statements of FDL Company for the year ended December 31, 2017 disclosed the following: 7.35% notes due 2018 $202,400,000 7.85% notes due 2023 $346,200,000 8.10% notes due 2032 $227,000,000 7.73% notes due 2030 $202,000,000 6.65% notes due 2019 $25,200,000 The above table summarizes the long-term debt of the Company at December 31, 2017. All of the notes were originally issued at their face(maturity) value and have been gradually repain over time so...
The financial statements for Campbell, Inc., and Newton Company for the year ended December 31, 2021,...
The financial statements for Campbell, Inc., and Newton Company for the year ended December 31, 2021, prior to the business combination whereby Campbell acquired Newton, are as follows (in thousands): Campbell Newton Revenues $ 2,600 $ 700 Expenses 1,880 400 Net income $ 720 $ 300 Retained earnings, 1/1 $ 2,400 $ 500 Net income 720 300 Dividends (270 ) 0 Retained earning, 12/31 $ 2,850 $ 800 Cash $ 240 $ 230 Receivables and inventory 1,200 360 Buildings (net)...
Svengool Inc. financial statements included the following amounts for the current year:    Retired bonds $70,000...
Svengool Inc. financial statements included the following amounts for the current year:    Retired bonds $70,000    Proceeds from collection of note receivable 39,000    Dividends received 11,000    Acquired production machinery 59,000    Sold treasury stock 34,000 Based on this information, what is the amount of net cash flows from financing activities?
On August 1, Year 1, A Co. acquired 70 percent of the common shares of B...
On August 1, Year 1, A Co. acquired 70 percent of the common shares of B co. for $700,000 in cash. On that date, the fair value of A’s identifiable net assets was $ 2,000,000 and the book value of its shareholders’ equity was 8,000,000. On that date, the fair value of B’s identifiable net assets was $ 6,000,000 and the book value of its shareholders’ equity was 500,000. For both companies, the fair value of all liabilities is equal...
The individual financial statements for Gibson Company and Keller Company for the year ending December 31,...
The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2018, follow. Gibson acquired a 60 percent interest in Keller on January 1, 2017, in exchange for various considerations totaling $1,020,000. At the acquisition date, the fair value of the noncontrolling interest was $680,000 and Keller’s book value was $1,360,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $340,000. This intangible...
In gathering information to prepare its 2021 financial statements, a company identified the following book-tax differences:...
In gathering information to prepare its 2021 financial statements, a company identified the following book-tax differences: The company accrued warranty expense of $27,000 on their financial statements but cannot deduct it on their income tax returns until the warranty claims are paid out. The company incurred $44,000 of meal and entertainment expenses during 2021. The company can only deduct 50% of these expenses on their tax returns. The company uses straight-line depreciation for financial accounting and accelerated depreciation for tax...
On January 1, 2014, Pirate Company acquired an 80% interest in Sun Company for $425,000. On...
On January 1, 2014, Pirate Company acquired an 80% interest in Sun Company for $425,000. On that date, Sun reported stockholder’s equity of $400,000: $100,000 in common stock and $300,000 in retained earnings. In setting the acquisition price, Pirate appraised three accounts at values different from the balances reported within Sun’s financial records: Buildings (8-year remaining life): Undervalued by $32,500 Land: Undervalued by $50,000 Royalty agreement (20-year remaining life): Not previously recorded; Valued at $30,000 At December 31, 2018, the...
On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange...
On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $788,900 in cash and equity securities. The remaining 30 percent of Atlanta’s shares traded closely near an average price that totaled $338,100 both before and after Truman’s acquisition. In reviewing its acquisition, Truman assigned a $129,500 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is...
The following transactions occurred during December 31, 2021, for the Falwell Company. A three-year fire insurance...
The following transactions occurred during December 31, 2021, for the Falwell Company. A three-year fire insurance policy was purchased on July 1, 2021, for $15,480. The company debited insurance expense for the entire amount. Depreciation on equipment totaled $14,500 for the year. Employee salaries of $21,500 for the month of December will be paid in early January 2022. On November 1, 2021, the company borrowed $290,000 from a bank. The note requires principal and interest at 12% to be paid...
Consolidation at the end of the first year subsequent to date of acquisition—Cost method (purchase price...
Consolidation at the end of the first year subsequent to date of acquisition—Cost method (purchase price equals book value) Assume that the parent company acquires its subsidiary on January 1, 2016, by exchanging 31,500 shares of its $1 par value Common Stock, with a market value on the acquisition date of $40 per share, for all of the outstanding voting shares of the acquiree. You have been charged with preparing the consolidation of these two companies at the end of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT