Millicom is acquiring Vikonic's outstanding common stock for $15 million. Financial information (in $ millions) on these two firms prior to the acquisition is as follows:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A 135.

Millicom is acquiring Vikonic's outstanding common stock for $15 million. Financial
information (in $ millions) on these two firms prior to the acquisition is as follows:
Millicom Vikonic
$40
27
13
Total assets, book value
Liabilities, book value
Stockholders' equity, book value
$90
40
50
What are the total assets and stockholders' equity (in $ millions) if the purchase method is
used as the accounting method for this merger?
O a. Total Asset Base = $63; Shareholders Equity = $130
O b. Total Asset Base = $130; Shareholders Equity = $63
Oc. Total Asset Base = $65; Shareholders Equity = $132
Od. Total Asset Base = $132; Shareholders Equity = $65
Transcribed Image Text:Millicom is acquiring Vikonic's outstanding common stock for $15 million. Financial information (in $ millions) on these two firms prior to the acquisition is as follows: Millicom Vikonic $40 27 13 Total assets, book value Liabilities, book value Stockholders' equity, book value $90 40 50 What are the total assets and stockholders' equity (in $ millions) if the purchase method is used as the accounting method for this merger? O a. Total Asset Base = $63; Shareholders Equity = $130 O b. Total Asset Base = $130; Shareholders Equity = $63 Oc. Total Asset Base = $65; Shareholders Equity = $132 Od. Total Asset Base = $132; Shareholders Equity = $65
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