Tell Tale Books acquired all the stock of Ringlet Publishing by purchasing the shares from their current owners for $50 million paid in cash. Ringlet Publishing has assets with a fair value of $50 million
How would Ringlet Publishing account for the acquisition?
A) No journal entry is necessary.
B) Ringlet Publishing would increase Cash by $50 million and decrease Property, Plant, and Equipment by $50 million.
C) Ringlet Publishing would increase Cash by $50 million and increase Paid-in Capital by $50 million.
D) Ringlet Publishing would increase Cash by $20 million and decrease Property, Plant, and Equipment by $20 million.
E) Ringlet Publishing would increase Cash by $50 million; decrease Property, Plant, and Equipment by $20 million; and increase Paid-in Capital by $30 million.
A
You might also like to view...
Which of the following is not one of the five styles of conflict management?
a. Accommodating b. Assertiveness c. Avoiding d. Collaborating e. Competing
User certificates generated by a CA need special efforts made by the directory to protect them from being forged.
Indicate whether the statement is true or false.