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Snowflake Corp. Penguin, Inc. Acquires 100% of the Outstanding Shares of Snowflake

Question 43

Multiple Choice

Snowflake Corp.
Penguin, Inc. acquires 100% of the outstanding shares of Snowflake Corp. for $2,250,000 and accounts for the transaction using the purchase method. Snowflake's balance sheet at the acquisition date is as follows:
Snowflake Corp. Penguin, Inc. acquires 100% of the outstanding shares of Snowflake Corp. for $2,250,000 and accounts for the transaction using the purchase method. Snowflake's balance sheet at the acquisition date is as follows: Based on the information concerning Snowflake Corp. what is the market value of the company's shareholders' equity at the acquisition date? A) $1,775,000 B) $475,000 C) $2,250,000 D) $0
Based on the information concerning Snowflake Corp. what is the market value of the company's shareholders' equity at the acquisition date?


A) $1,775,000
B) $475,000
C) $2,250,000
D) $0

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