Retail Records Inc. acquired all of Decibel Studios€™ voting shares on January 1, 20X2, for $280,000. Retail€™s balance sheet immediately after the combination contained the following balances:

Decibel€™s balance sheet at acquisition contained the following balances:

On the date of combination, the inventory held by Decibel had a fair value of $170,000, and its buildings and recording equipment had a fair value of $375,000. Goodwill reported by Decibel resulted from a purchase of Sound Stage Enterprises in 20X1. Sound Stage was liquidated and its assets and liabilities were brought onto Decibel€™s books.

Required
Compute the balances to be reported in the consolidated balance sheet immediately after the acquisition for:
a. Inventory.
b. Buildings and Equipment (net).
c. Investment in Decibel Stock.
d. Goodwill.
e. Common Stock.
f. RetainedEarnings.

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RETAIL RECORDS INC. Balance Sheet January 1, 20X2 $ 75,000 50,000 300,000 400,000 105,000 $120,000 Accounts Payable Cash & Receivables Inventory Land Buildings & Equipment (net) Investment in Decibel Stock Total Assets 110,000 Taxes Payable 70,000 Notes Payable 350,000 Common Stock 280,000 Retained Earnings $930,000 Total Liabilities & Stockholders' Equity DECIBEL STUDIOS Balance Sheet January 1, 20X2 Cash & Receivables Inventory Buildings & Equipment (net) Goodwill 40,000 Accounts Payable 180,000 Notes Payable 350,000 ommon Stock 30,000 Additional Paid-In Capital $ 90,000 250,000 100,000 200,000 (40,000) $600,000 Retained Earnings Total Assets $600,000 Total Liabilities & Stockholders Equity