Liu Company acquires Heller, Inc., by issuing 30,000 shares of $1 par common stock with a market price of $22 per share on the acquisition date and paying $150,000 cash. The assets and liabilities on Hellers balance sheet were valued at fair values except equipment that was undervalued by $225,000. There was also an unrecorded patent valued at $45,000, as well as an unrecorded trademark valued at $60,000. In addition, the agreement provided for additional consideration, valued at $50,000, if certain earnings targets were met. The pre-acquisition balance sheets for the two companies at acquisition date are presented below.

	Liu	Heller
Cash	$ 220,600	$ 25,400
Accounts receivable	125,000	132,000
Inventory	106,000	201,000
Property, plant, and equipment	2,003,500	406,500
	$2,455,100	$764,900
Accounts payable	$ 40,500	$ 32,700
Salaries and taxes payable	37,600	45,900
Notes payable	510,100	220,000
Common stock	230,000	60,000
Additional paid-in capital	950,000	106,500
Retained earnings	686,900	299,800
	$2,455,100	$764,900

Compute consolidated liabilities.

Select one:

A. $348,600

B. $638,200

C. $886,800

D. $936,800

Compute consolidated inventory.

Select one:

A. $307,000

B. $201,000

C. $297,000

D. $106,000