Required information Pickup Company acquired 100 percent of the voting common shares of Sedan Corporation by issuing bonds with a par value and fair value of $200,000. Immediately prior to the acquisition, Pickup reported total assets of $600,000, liabilities of $370,000, and stockholders' equity of $230,000. At that date, Sedan reported total assets of $500,000, liabilities of $300,000, and stockholders' equity of $200,000. Included in Sedan's liabilities was an account payable to Pickup in the amount of $50,000, which Pickup included in its accounts receivable. Based on the preceding information, what amount of total liabilities was reported in the consolidated balance sheet immediately after the acquisition? Multiple Choice $370,000 $670,000 $820,000 $870,000
Required information Pickup Company acquired 100 percent of the voting common shares of Sedan Corporation by issuing bonds with a par value and fair value of $200,000. Immediately prior to the acquisition, Pickup reported total assets of $600,000, liabilities of $370,000, and stockholders' equity of $230,000. At that date, Sedan reported total assets of $500,000, liabilities of $300,000, and stockholders' equity of $200,000. Included in Sedan's liabilities was an account payable to Pickup in the amount of $50,000, which Pickup included in its accounts receivable. Based on the preceding information, what amount of total liabilities was reported in the consolidated balance sheet immediately after the acquisition? Multiple Choice $370,000 $670,000 $820,000 $870,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required information
Pickup Company acquired 100 percent of the voting common shares of Sedan Corporation by issuing bonds with a par
value and fair value of $200,000. Immediately prior to the acquisition, Pickup reported total assets of $600,000, liabilities
of $370,000, and stockholders' equity of $230,000. At that date, Sedan reported total assets of $500,000, liabilities of
$300,000, and stockholders' equity of $200,000. Included in Sedan's liabilities was an account payable to Pickup in the
amount of $50,000, which Pickup included in its accounts receivable.
Based on the preceding information, what amount of total liabilities was reported in the consolidated balance sheet immediately after the acquisition?
Multiple Choice
$370,000
$670,000
$820,000
$870,000
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