Fact Pattern 41-2
Shale Oil Corporation combines its assets and debts with those of Tierra Frakking Company to form Unified Resources, Inc. Shale and Tierra cease to exist.
-Refer to Fact Pattern 41-2. Unified Resources assumes
A) all of Shale's and Tierra's debts.
B) half of Shale's and Tierra's debts.
C) none of Shale's and Tierra's debts unless there is a formal transfer of liability.
D) only debts that Shale and Tierra incurred after a combination was proposed.

Question

Fact Pattern 41-2​
Shale Oil Corporation combines its assets and debts with those of Tierra Frakking Company to form Unified Resources, Inc. Shale and Tierra cease to exist.
-Refer to Fact Pattern 41-2. Unified Resources assumes​
A) ​all of Shale's and Tierra's debts.
B) ​half of Shale's and Tierra's debts.
C) ​none of Shale's and Tierra's debts unless there is a formal transfer of liability.
D) ​only debts that Shale and Tierra incurred after a combination was proposed.

Quizplus · Accepted Answer

When Shale Oil Corporation and Tierra Frakking Company combine to form Unified Resources, Inc., the new company assumes all of their assets and debts. Therefore, Unified Resources assumes all of Shale's and Tierra's debts.

Fact Pattern 41-2​ Shale Oil Corporation Combines Its Assets and Debts with Those

Fact Pattern 41-2 Shale Oil Corporation Combines Its Assets and Debts with Those