Fact Pattern 31-1 Outlook Inc. merges with Pinnacle Inc. Only Pinnacle remains.
Refer to Fact Pattern 31-1. Outlook held rights in certain real property. With regard to these assets, in the merger Pinnacle assumes
A) none of Outlook ' s assets.
B) only those assets acquired after the merger was proposed.
C) an amount of assets equal to the ratio of the firms' pre-merger market values.
D) all of Outlook ' s assets .

Question

Quizplus · Accepted Answer

In a merger where one company absorbs another, the surviving company assumes all assets and liabilities of the absorbed company. Hence, Pinnacle assumes all of Outlook's assets.