On 1/1/ 2020,P Co acquired 100% of K Co stock at an amount to its book value.

Selected balance sheet data at December 31, 2018,are as follows:

P Co K Co

Total Assets 420,000 180,000

Liabilities 120,000 60,000

Common Stock 100,000 50,000

Retained Earnings 200,000 70,000

In 1/1/ 2020, P CO balance sheet, what amount should be reported as investment in k co?

Select one:

a. 30,000

b. 45,000

c. 300,000

d. 120,000

On 1/1/2019,X Co acquired 100% of the common stock of Y Co. At the time,X held Furniture with historical cost of $60,000,accumulated depreciation $10,000 and a fair value of $130,000; Y held Furniture with historical cost of $25,000 ,accumulated depreciation $5,000 and fair value of $30,000. at what amount would net book value of furniture be reported in X Co balance sheet prepared immediately after the merger ?

Select one:

a. 75,000

b. 80,000

c. 85,000

d. 90,000