Question
On January 1, 2014, Punch Corporation purchased 100% of the common stock of Soopy Co. Separate balance sheet data for the companies at the acquisition
On January 1, 2014, Punch Corporation purchased 100% of the common stock of Soopy Co. Separate balance sheet data for the companies at the acquisition date (after the acquisition) are given below:
Punch Soopy
Cash $34,000 $206,000
A/R 144,000 26,000
Inventory 132,000 38,000
Land 68,000 32,000
Plant assets 460,000 240,000
Investment in Soopy 392,000
Accounts payable $206,000 $142,000
Capital stock 800,000 300,000
Retained earnings 224,000 100,000
Total liabilities & equities $ 1,230,000 $ 542,000
At the date of the acquisition, the book values of Soopy net assets were equal to the fair value except for Soopy's inventory, which had a fair value of $60,000.
What amount of total liabilities will be reported in Consolidated balance Sheet?
Select one: a. 278,000 b. 348,000 c. 206,000 d. 319,000
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