Explanation (A) Inventory Land Carrying value 80000 (100000 Fair value 75000 115000 Carrying value 30000 80000 (8) Fair value 25000 165000 1. If (B) merged with (A), the inventory in (A's) balance sheet will be 2. If (A) and (B) make agreement to form a new company (C), the land in (C's) balance sheet will be 3. If there is a full parent-subsidiary relationship between (A) and (B), the inventory in consolidated balance sheet will be(parent concept) 4. If there is a 75% parent-subsidiary relationship between (A) and (B), the inventory in consolidated balance sheet will be (economic concept)