On January 1, 20X9, Gulliver Corporation acquired 80 percent of Sea-Gull Company's common stock for $160,000 cash. The fair value of the noncontrolling interest at that date was determined to be $40,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:
Gulliver Corp. Sea-GullCorp.
Cash $60,000 ] $20,000
Accounts Receivable 80,000 30,000
Inventory 90,000 40,000
Land 100,000 40,000
Buildings and Equipment 200,000 150,000
Less: Accumulated Depreciation (80,000) (50,000)
Investment in Sea-Gull Corp. 160,000
Total Assets $610,000 $230,000
Accounts Payable $110,000 $30,000
Bonds Payable 95,000 40,000
Common Stock 200,000 40,000
Retained Earnings 205,000 120,000
Total Liabilities and Equity $610,000 $230,000
At the date of the business combination, the book values of Sea-Gull's net assets and liabilities approximated fair value except for inventory, which had a fair value of $45,000, and land, which had a fair value of $60,000.
24. Based on the preceding information, what amount of total inventory will be reported in the consolidated balance sheet prepared immediately after the business combination?
A. $130,000
B. $135,000
C. $90,000
D. $45,000
25. Based on the preceding information, what amount of goodwill will be reported in the consolidated balance sheet prepared immediately after the business combination?
A. $0
B. $40,000
C. $20,000
D. $15,000
26. Based on the preceding information, what amount of total assets will be reported in the consolidated balance sheet prepared immediately after the business combination?
A. $720,000
B. $840,000
C. $825,000
D. $865,000
27. Based on the preceding information, what amount of total liabilities will be reported in the consolidated balance sheet prepared immediately after the business combination?
A. $395,000
B. $280,000
C. $275,000
D. $195,000
28. Based on the preceding information, what amount will be reported as noncontrolling interest in the consolidated balance sheet prepared immediately after the business combination?
A. $0
B. $15,000
C. $40,000
D. $46,000
29. Based on the preceding information, what amount of consolidated retained earnings will be reported immediately after the business combination?
A. $205,000
B. $120,000
C. $325,000
D. $310,000
30. Based on the preceding information, what amount will be reported as total stockholders' equity in the consolidated balance sheet prepared immediately after the business combination?
A. $445,000
B. $205,000
C. $565,000
D. $550,000
Answers: 1
Other questions on the subject: Business
Business, 22.06.2019 02:20, lovehelping1564
Neon light company of kansas city ships lamps and lighting appliances throughout the country. ms. neon has determined that through the establishment of local collection centers around the country, she can speed up the collection of payments by one and one-half days. furthermore, the cash management department of her bank has indicated to her that she can defer her payments on her accounts by one-half day without affecting suppliers. the bank has a remote disbursement center in florida. a. if neon light company has $2.90 million per day in collections and $1.18 million per day in disbursements, how many dollars will the cash management system free up?
Answers: 2
Business, 22.06.2019 08:30, labrandonanderson00
What is the equity method balance in the investment in lindman account at the end of 2018?
Answers: 2
Business, 22.06.2019 10:00, caz27
Your uncle is considering investing in a new company that will produce high quality stereo speakers. the sales price would be set at 1.5 times the variable cost per unit; the variable cost per unit is estimated to be $75.00; and fixed costs are estimated at $1,200,000. what sales volume would be required to break even, i. e., to have ebit = zero?
Answers: 1
Do you know the correct answer?
On January 1, 20X9, Gulliver Corporation acquired 80 percent of Sea-Gull Company's common stock for...
Questions in other subjects:
Computers and Technology, 01.09.2019 15:10
History, 01.09.2019 15:10
English, 01.09.2019 15:10
Mathematics, 01.09.2019 15:10
Mathematics, 01.09.2019 15:10
