Planter Corporation purchased 70 percent of the common stock of Silk Corporation on December 31. 20X2. Balance sheet data for the two companies immediately following the acquisition are given below:

At the date of the business combination, the book values of Silk's net assets and liabilities approximated fair value except for inventory, which had a fair value of \(\$ 85,000\), and land, which had a fair value of \(\$ 45,000\).
\section*{Required}
Indicate in each case the appropriate total that should appear in the consolidated balance sheet prepared immediately after the business combination.
1. What amount of inventory will be reported?

a. \(\$ 179.000\).

b. \(\$ 200.000\).

c. \(\$ 210.500\).

d. \(\$ 215,000\).
2. What amount of goodwill will be reported?

a. \(\$ 0\).

b. \(\$ 23,000\).

c. \(\$ 29,500\).

d. \(\$ 47.500\).
3. What amount of total assets will be reported?

a. \(\$ 1,196,500\).

b. \(\$ 1.098 .500\).

c. \(\$ 1,086,000\).

d. \(\$ 1,051,000\).
4. What amount of total liabilities will be reported?

a. \(\$ 265.000\).

b. \(\$ 436.500\).

c. \(\$ 622.000\).

d. \(\$ 701.500\).
5. What amount will be reported as noncontrolling interest?

a. \(\$ 42.000\).

b. \(\$ 48.000\).

c. \(\$ 106,500\).

d. \(\$ 148.500\).
6. What amount of consolidated retained earnings will be reported?

a. \(\$ 295.000\).

b. \(\$ 268.000\).

c. \(\$ 232.000\).

d. \(\$ 205,000\).
7. What amount of total stockholders' equity will be reported?

a. \(\$ 355,000\).

b. \(\$ 397,000\).

c. \(\$ 453,000\).

d. \(\$ 495,000\).

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Item Planter Corporation $ 49.000 Silk Corporation $ 30,000 Cash Accounts Receivable Inventory 110.000 45,000 130.000 70.000 Land 80.000 25.000 Buildings and Equipment 500.000 400,000 Less: Accumulated Depreciation (223,000) (165.000) Investment in Silk Corporation Stock 145.500 Total Assets $791.500 $405.000 Accounts Payable $ 61.500 $ 28,000 Taxes Payable 95.000 Bonds Payable 280.000 37.000 200.000 Common Stock 150.000 50,000 Retained Earnings 205.000 90.000 Total Liabilities and Stockholders' Equity $791.500 $405,000