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jadenja712
jadenja712
05.07.2020 • 
Business

On January 1, 20X9, Pirate 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-Gull Corp.Cash $60,000 $20,000Accounts Receivable 80,000 30,000Inventory 90,000 40,000Land 100,000 40,000Buildings and Equipment 200,000 150,000Less: Accumulated Depreciation (80,000) (50,000)Investment in Sea-Gull Corp. 160,000 Total Assets $610,000 $230,000Accounts Payable $110,000 $30,000Bonds Payable 95,000 40,000Common Stock 200,000 40,000Retained Earnings 205,000 120,000Total Liabilities and Equity $610,000 $230,000At 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.a. 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. $130,000B. $135,000C. $90,000D. $45,000b. Based on the preceding information, what amount of goodwill will be reported in the consolidated balance sheet prepared immediately after the business combination?A. $0B. $40,000C. $20,000D. $15,000c. 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. $720,000B. $840,000C. $825,000D. $865,000d. 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. $395,000B. $280,000C. $275,000D. $195,000e. 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. $0B. $15,000C. $40,000D. $46,000f. Based on the preceding information, what amount of consolidated retained earnings will be reported immediately after the business combination?A. $205,000B. $120,000C. $325,000D. $310,000g. 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. $445,000B. $205,000C. $565,000D. $550,000

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