14. Consolidated financial statements tend to be most useful for:

A. Creditors of a consolidated subsidiary.

B. Investors and long-term creditors of the parent company.

C. Short-term creditors of the parent company.

D. Stockholders of a consolidated subsidiary.

13. On December 31, 20X9, Rudd Company acquired 80 percent of the common stock of Wilton Company. At the time, Rudd held land with a book value of $100,000 and a fair value of $260,000; Wilton held land with a book value of $50,000 and fair value of $600,000. Using the parent company theory, at what amount would land be reported in a consolidated balance sheet prepared immediately after the combination?

A. $550,000

B. $590,000

C. $700,000

D. $860,000

1-3. On December 31, 20X9, Add-On Company acquired 100 percent of Venus Corporation's common stock for $300,000. Balance sheet information Venus just prior to the acquisition is given here:

Cash and Receivables	$35,000
Inventory	75,000
Land	100,000
Buildings and Equipment (net)	220,000
Total Assets	$430,000
Accounts Payable	$65,000
Bonds Payable	150,000
Common Stock	100,000
Retained Earnings	115,000
Total Liabilities and Stockholders Equity	$430,000

At the date of the business combination, Venus's net assets and liabilities approximated fair value except for inventory, which had a fair value of $60,000, land which had a fair value of $125,000, and buildings and equipment (net), which had a fair value of $250,000.

1. Based on the information provided, what amount of inventory will be included in the consolidated balance sheet immediately following the acquisition?

A. $60,000

B. $75,000

C. $15,000

D. $45,000

2. Based on the information provided, what amount of goodwill will be included in the consolidated balance sheet immediately following the acquisition?

A. $30,000

B. $15,000

C. $85,000

D. $45,000

3. Based on the information provided, what amount will be included as investment in Venus Corporation in the consolidated balance sheet immediately following the acquisition?

A. $0

B. $395,000

C. $255,000

D. $300,000