Compute the amount of Hurley's buildings that would be reported in a December 31, 2011, consolidated balance sheet. A. $1,620. B. $1,380. C. $1,320. D. $1,080. E. $1,500.

4. Compute the amount of Hurley's buildings that would be reported in a December 31, 2010, consolidated balance sheet. A. $1,560. B. $1,260. C. $1,440. D. $1,160. E. $1,140.

4. Compute the amount of Hurley's buildings that would be reported in a December 31, 2010, consolidated balance sheet. A. $1,560. B. $1,260. C. $1,440. D. $1,160. E. $1,140.

Perry Company acquires 100% of the stock of Hurley Corporation on January 1, 2010, for $3,800 cash. As of that date Hurley has the following trial balance; Credit Debit $ 500 600 800 1,500 1,000 900 Cash Accounts receivable Inventory Buildings (net) (5 year life) Equipment (net) (2 year life) Land Accounts payable Long-term liabilities (due 12/31/13) Common stock Additional paid - in capital Retained earnings Total $ 400 1,800 1,000 600 1,500 $5,300 $5,300 Net income and dividends reported by Hurley for 2010 and 2011 follow: 2010 2011 Net income $100 $120 Dividends 30 40 The fair value of Hurley's net assets that differ from their book values are listed below: Fair Value Inventory $ 900 Buildings 1,200 Equipment 1,250 Land 1,300 Long-term liabilities 1,700 Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life. FIFO inventory valuation method is used