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Beta Company acquired 100 percent of the voting common shares of Standard Video Corporation, by issuing bonds with a par value and fair value of
Beta Company acquired 100 percent of the voting common shares of Standard Video Corporation, by issuing bonds with a par value and fair value of $150,000. Immediately prior to the acquisition, Beta reported total assets of $500,000, liabilities of $280,000, and stockholders' equity of $220,000. At that date, Standard Video reported total assets of $400,000, liabilities of $250,000, and stockholders' equity of $150,000 Based on the preceding information, what amount of total liabilities was reported in the consolidated balance sheet immediately after acquisition? Select one: a. 500.000 6.580,000 0.680,000 d. 280.000 In the equity method of acquisition income is recognized only when the subsidiary declares dividends Select one: True False
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