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

Multiple Choice

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) : $$\begin{array} { l r r } & \text { Osicom Tech } & \text { Rexon } \\\text { Total assets } & \$ 120 & \$ 50 \\\text { Liabilities } & 60 & 25 \\\text { Stockholders' equity } & 60 & 25\end{array}$$ ? 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