Osicom Tech is acquiring Rexon's outstanding common stock for $32 million.Before acquisition financial information on these two firms is given as follows (in $ millions):

What are the total assets and stockholders' equity (in $ millions) if the purchase method is used as the accounting method for this merger?
A)$170, $85
B)$177, $92
C)$170, $92
D)$85, $92

Question

Osicom Tech is acquiring Rexon's outstanding common stock for $32 million.Before acquisition financial information on these two firms is given as follows (in $ millions):

What are the total assets and stockholders' equity (in $ millions) if the purchase method is used as the accounting method for this merger?
A)$170, $85 
B)$177, $92 
C)$170, $92 
D)$85, $92

Quizplus · Accepted Answer

Stockholders' equity = $60 + $32 = $92
Liabilities = $60 + $25 = $85
Total assets = $120 + $57 = $177

Osicom Tech Is Acquiring Rexon's Outstanding Common Stock for $32