10) The balance sheets of Company X and Company Y (unrelated companies) on January 2, 2021, are: Current assets.. Noncurrent assets. Total assets. Liabilities Common stock ($10 par value) Common stock ($5 par value). Additional paid-in capital. Retained earnings. Total liabilities and equity X $ 10,900 9,600 $20,500 $11,200 2,500 4,200 2,600 $ 20,500 Y $1,800 1,900 $3,700 $2,300 300 600 500 $3,700 On January 2, 2021, Company X issued 80 shares of its own $10 par value common stock (newly issued) in exchange for 100% of Company Y's $5 par value common stock. The fair value of Company X's common stock at that time was $25 per share. At the acquisition date (i.e., exchange date): 1. The fair value of Company Y's inventory is $40 greater than its book value. 2. The fair value of Company Y's property, plant and equipment is $200 greater than its book value. 3. The fair values of all other tangible net assets of Company Y are equal to their book values. There were no inter-company accounts included on the balance sheets of either company at the exchange date (January 2, 2021). If a consolidated balance sheet is prepared immediately after the exchange, which of the following is not a correct statement: A) The balance of current assets on the consolidated balance sheet is $12,740. B) The balance of goodwill on the consolidated balance sheet is $360. C) The balance of total assets on the consolidated balance sheet is $24,800. D) The balance of capital stock (common stock plus additional paid-in capital) reported on the consolidated balance sheet is $8,100. E) The balance of retained earnings on the consolidated balance sheet is $2,600.

10) The balance sheets of Company X and Company Y (unrelated companies) on January 2 , 2021, are: On January 2, 2021, Company X issued 80 shares of its own $10 par value common stock (newly issued) in exchange for 100% of Company Y's $5 par value common stock. The fair value of Company X's common stock at that time was $25 per share. At the acquisition date (i.e, exchange date): 1. The fair value of Company Y 's inventory is $40 greater than its book value. 2. The fair value of Company Y 's property, plant and equipment is $200 greater than its book value. 3. The fair values of all other tangible net assets of Company Y are equal to their book values. There were no inter-company accounts included on the balance sheets of either company at the exchange date (January 2, 2021). If a consolidated balance sheet is prepared immediately after the exchange, which of the following is not a correct statement: A) The balance of current assets on the consolidated balance sheet is $12,740. B) The balance of goodwill on the consolidated balance sheet is $360. C) The balance of total assets on the consolidated balance sheet is $24,800. D) The balance of capital stock (common stock plus additional paid-in capital) reported on the consolidated balance sheet is $8,100. E) The balance of retained carnings on the consolidated balance sheet is $2,600