Question 1 · M&A accountingAnalystAssociate
A buys 100% of B. Fair values equal book values.
Balance sheet of A
| Cash | 200 |
| Other assets | 300 |
| Total assets | 500 |
| Debt | 100 |
| Shareholders’ equity | 400 |
| Total liabilities & equity | 500 |
Balance sheet of B
| Cash | 20 |
| PP&E | 80 |
| Total assets | 100 |
| Debt | 30 |
| Shareholders’ equity | 70 |
| Total liabilities & equity | 100 |
Create a free account to check your answers and keep your scores.
Log in or sign up