Xenon Acquired 100% of Volt's Net Assets for $300,000 A)$968,000
B)$184,000
C)$784,000
D)$1,084,000

Multiple Choice

Xenon acquired 100% of Volt's net assets for $300,000. On the acquisition date, the fair value of the current assets and the net capital assets were $208,000 and $438,000 respectively. The fair value of the liabilities equalled their book value. On Xenon's statement of financial position, what is the total of its shareholders' equity? $\begin{array}{|l|r|r|} \hline& \text { Xenon Co. } & \text { Volt Ltd. } \\\hline \text { Current assets } & \$ 480,000 & \$ 80,000 \\\hline \text { Net capital assets } & \underline{800,000} & \underline{480,000} \\\hline & \$ 1,280,000 & \$ 560,000 \\\hline \text { Current liabilities } & \$ 336,000 & \$ 280,000 \\\hline \text { Long-term debt } & 160,000 & 96,000 \\\hline \text { Share capital } & 720,000 & 100,000 \\\hline \text { Retained earnings } & -64,000 & \$ \underline{64,000} \\\hline & \$ 1,280,000 & \$ \underline{560,000} \\\hline\end{array}$

A) $968,000
B) $184,000
C) $784,000
D) $1,084,000