The fair market value of the fixed assets of Markco, Inc. is $8,500.
Big-T paid $13,000 for Markco, Inc. with funds from a long-term debt offering. The purchase method of accounting is used.
What is the total amount of debt and equity on the books of Big-T after the merger?
A) $17,300
B) $21,800
C) $25,800
D) $30,300
E) $36,800

Question

The fair market value of the fixed assets of Markco, Inc. is $8,500.
Big-T paid $13,000 for Markco, Inc. with funds from a long-term debt offering. The purchase method of accounting is used.
What is the total amount of debt and equity on the books of Big-T after the merger?
A) $17,300 
B) $21,800 
C) $25,800 
D) $30,300 
E) $36,800

Quizplus · Accepted Answer

The Answer of   The fair market value of the fixed assets of Markco, Inc. is $8,500.
Big-T paid $13,000 for Markco, Inc. with funds from a long-term debt offering. The purchase method of accounting is used.
What is the total amount of debt and equity on the books of Big-T after the merger?
A) $17,300 
B) $21,800 
C) $25,800 
D) $30,300 
E) $36,800

The Fair Market Value of the Fixed Assets of Markco