Record Corporation
CD Inc. acquires 100% of the outstanding shares of Record Corp. for $1,200,000 and accounts for the transaction using the purchase method. Record Corp's balance sheet at the date of acquisition appears below:

Based on the information concerning Record Corp., what is the market value of the company's shareholders' equity at the acquisition date?
A) $0
B) $908,000
C) $1,200,000
D) $1,458,000

Question

Record Corporation
CD Inc. acquires 100% of the outstanding shares of Record Corp. for $1,200,000 and accounts for the transaction using the purchase method. Record Corp's balance sheet at the date of acquisition appears below:

Based on the information concerning Record Corp., what is the market value of the company's shareholders' equity at the acquisition date?
A) $0 
B) $908,000 
C) $1,200,000 
D) $1,458,000

Quizplus · Accepted Answer

The Answer of Record Corporation
CD Inc. acquires 100% of the outstanding shares of Record Corp. for $1,200,000 and accounts for the transaction using the purchase method. Record Corp's balance sheet at the date of acquisition appears below:

Based on the information concerning Record Corp., what is the market value of the company's shareholders' equity at the acquisition date?
A) $0 
B) $908,000 
C) $1,200,000 
D) $1,458,000

Record Corporation CD Inc. Acquires 100% of the Outstanding Shares of Record