Business, 28.07.2020 21:01 elizabethburkha

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-Gull Corp.
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.
1. 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
2. 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
3. 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
4. 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
5. 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
6. 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
7. 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: 3

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Answers

Answer from: avastanleyy

1. Amount of inventory:

D. $45,000

2. Amount of Goodwill:

A. $0

3. Total assets:

A. $720,000

4. Total liabilities:

C. $275,000

5. Non-controlling interest:

C. $40,000

6. Consolidated Retained Earnings

A. $205,000

7. Stockholders' Equity:

$405,000

Explanation:

a) Data:

1. Balance Sheets

Gulliver Corp. Sea-Gull Corp.

Book value Fair value

Cash $ 60,000 $ 20,000 $20,000

Accounts Receivable 80,000 30,000 30,000

Inventory 90,000 40,000 45,000

Land 100,000 40,000 60,000

Buildings and Equipment 200,000 150,000 150,000

Less: Acc. Depreciation (80,000) (50,000) (50,000)

Investment in Sea-Gull Corp.160,000

Total Assets $ 610,000 $ 230,000 $255,000

Accounts Payable $ 110,000 $ 30,000 $30,000

Bonds Payable 95,000 40,000 40,000

Unrealized gain on fair value 25,000

Common Stock 200,000 40,000 0

Retained Earnings 205,000 120,000 0

Total Liabilities & Equity $ 610,000 $ 230,000

Answer from: Quest

Setiap tindakan memiliki reaksi. ucapan itu ditulis oleh newton. itulah hukum ketiga-nya.

Answer from: Quest

answer; post closing trial balance;

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On January 1, 20X9, Gulliver Corporation acquired 80 percent of Sea-Gull Company's common stock for...

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