Question
On January 1, 2017, Best-western Co. acquired 80 percent of B- Gulf Company's common stock for $160,000 cash. The fair value of the noncontrolling interest
On January 1, 2017, Best-western Co. acquired 80 percent of B- Gulf Company's common stock for $160,000 cash. The fair value of the noncontrolling interest at that date was determined to be $40,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Best western Co Corp. B- Gulf Corp.
Cash $ 60,000 $ 20,000 Accounts Receivable 80,000 30,000 Inventory 90,000 40,000 Land 100,000 40,000 Buildings and Equipment 200,000 150,000 Less: Accumulated Depreciation (80,000) (50,000) Investment in B-Gull Co. 160,000 Total Assets $ 610,000 $ 230,000 Accounts Payable $ 110,000 $ 30,000 Bonds Payable 95,000 40,000 Common Stock 200,000 40,000 Retained Earnings 205,000 120,000 Total Liabilities and Equity $ 610,000 $ 230,000 On January 1, 2017, the book values of B- Gulf 's net assets and liabilities equal fair value except for inventory, which had a fair value of $45,000, and land, which had a fair value of $60,000.
Required Based on the information provided, find the amount of : ( Please show your calculations). 1. The total inventory will be reported in the consolidated balance sheet prepared immediately after the business combination? 2. The goodwill reported in the consolidated balance sheet prepared immediately after the business combination? 3. The total assets will be reported in the consolidated balance sheet prepared immediately after the business combination? 4. The total liabilities will be reported in the consolidated balance sheet prepared immediately after the business combination? 5. The noncontrolling interest in the consolidated balance sheet prepared immediately after the business combination? 6. The consolidated retained earnings will be reported immediately after the business combination? 7. The total stockholders' equity in the consolidated balance sheet prepared immediately after the business combination?
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