I believe it’s False, it might be wrong though
Dont know the answer, but i can tell you that combo is wrong.
Answer:
B. $1,760
Explanation:
Given that:
Liabilities = $400, shares = 40 shares, par value = $1 per share, undervalued building asset = $60, net building amount = $1260
amount of consolidated buildings (net) at date of acquisition = net amount for buildings + amount of undervalued building asset + $400 + ($1.00 x 40 shares)
amount of consolidated buildings (net) at date of acquisition = $1260 + $60 + $400 + $40 = $1760
Hi!
The answer to your question should be B. Pays the difference of the current value to the amount you owe.
