1. Medium Lisa Co. paid cash for all of the voting common stock of Victoria Corp. Victoria will continue to exist as a separate corporation. Journal entries for the consolidation of Lisa and Victoria would be recorded in
(a) a worksheet.
(b) Lisa's general journal.
(c) Victoria's general journal.
(d) Victoria's secret consolidation journal.
(e) the general journals of both companies.

2.Which of the following statements is true regarding a statutory consolidation?
(a) The original companies dissolve while remaining as separate divisions of a newly created company.
(b) Both companies remain in existence as legal corporations with one corporation now a subsidiary of the acquiring company.
(c) The acquired company dissolves as a separate corporation and becomes a division of the acquiring company.
(d) The acquiring company acquires the stock of the acquired company as an investment.
(e) None of the above.

3.Which of the following statements is true regarding an acquisition? (Points: 6)
(a) The original companies dissolve while remaining as separate divisions of a newly created company.
(b) Both companies remain in existence as legal corporations with one corporation now a subsidiary of the acquiring company.
(c) The acquired company dissolves as a separate corporation and becomes a division of the acquiring company.
(d) The acquired company dissolves and goes out of business.
(e) None of the above.

4.Which of the following statements is true regarding a statutory merger? (Points: 6)
(a) The original companies dissolve while remaining as separate divisions of a newly created company.
(b) Both companies remain in existence as legal corporations with one corporation now a subsidiary of the acquiring company.
(c)The acquired company dissolves as a separate corporation and becomes a division of the acquiring company.
(d) The acquiring company acquires the stock of the acquired company as an investment.
(e) None of the above.