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need it ASAP please 5 multiple choice Peace Corporation acquired 100 percent of Star Company's common stock on January 1, 2020. Balance sheet data for
need it ASAP please 5 multiple choice
Peace Corporation acquired 100 percent of Star Company's common stock on January 1, 2020. Balance sheet data for the two companies immediately following the acquisition follows: Star Item Cash Company $ 25,000 40,000 55,000 40,000 160,000 (50,000) Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated Depreciation Investment in Star Company Stock Total Assets Accounts Payable Taxes Payable Bonds Payable Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Peace Corporation $ 30,000 80,000 150,000 65,000 260,000 (120,000) 150,000 $ 615,000 $45,000 20,000 200,000 50,000 300,000 $ 615,000 $ 270,000 $33,000 8,000 100,000 20,000 109,000 $ 270,000 At the date of the business combination, the book values of Star's net assets and liabilities approximated fair value except for inventory, which had a fair value of $50,000, and land, which had a fair value of $60,000 Required: Based on the preceding information, at what amount should total land be reported in the consolidated balance sheet prepared immediately after the business combination? a $105,000 O b. $125,000 c. $40,000 $60,000 Required: Based on the preceding information, at what amount should total land be reported in the consolidated balance sheet prepared immediately after the business combination? O a $105,000 O b. $125,000 O C. $40,000 Od $65,000 O e None Based on the preceding information, what amount of goodwill will be reported in the consolidated balance sheet prepared immediately after the business combination? O a $21,000 O b. $6,000 Oc None Od $0 O e $15,000 Based on the preceding information, what amount of total assets will appear in the consolidated balance sheet prepared immediately after the business combination? O a $891,000 O b. $756,000 Oc$750,000 od $885,000 o e None Based on the preceding information, what amount of Investment in Star Company Stock will be reported in the consolidated balance sheet prepared immediately after the business combination? O a $171,000 O b. $150,000 O c. $0 O d. None of the answers Oe. $270,000 Based on the preceding information, what amount of retained earnings will be reported in the consolidated balance sheet prepared immediately after the business combination? O a $300,000 b. $191,000 Oc None Od $259,000 e $409,000 Step by Step Solution
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