Alpha Company acquired 100 percent of the voting common shares of Gamma Corporation by issuing bonds with a par value and fair value of $200,000. Immediately prior to the acquisition, Alpha reported total assets of $600,000, liabilities of $370,000, and stockholders' equity of $230,000. At that date, Gamma reported total assets of $500,000, liabilities of $300,000, and stockholders' equity of $200,000. Included in Gamma's liabilities was an account payable to Alpha in the amount of $50,000, which Alpha included in its accounts receivable.
-Based on the preceding information,what amount of total assets did Alpha report in its balance sheet immediately after the acquisition?
A) $1,100,000
B) $1,000,000
C) $800,000
D) $1600,000

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The Answer of Alpha Company acquired 100 percent of the voting common shares of Gamma Corporation by issuing bonds with a par value and fair value of $200,000. Immediately prior to the acquisition, Alpha reported total assets of $600,000, liabilities of $370,000, and stockholders' equity of $230,000. At that date, Gamma reported total assets of $500,000, liabilities of $300,000, and stockholders' equity of $200,000. Included in Gamma's liabilities was an account payable to Alpha in the amount of $50,000, which Alpha included in its accounts receivable.
-Based on the preceding information,what amount of total assets did Alpha report in its balance sheet immediately after the acquisition?
A) $1,100,000
B) $1,000,000
C) $800,000
D) $1600,000

Alpha Company Acquired 100 Percent of the Voting Common Shares