On January 1, 20X1, the Moody Company entered into a transaction for 100% of the outstanding common stock of Osorio Company. To acquire these shares, Moody issued S400 in long-term liabilities and 40 shares of common stock having a par value of S1 per share but a fair value of S10 per share. Moody paid $20 to lawyers, accountants, and brokers for assistance in bringing about this acquisition. Another SIS was paid in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Moody Osorio Cash S 10 $40 Receivables X10 180 Inventories 1.080 280 Land 600 360 Buildings (net) 1.260 Equipment (not 480 100 Accounts payable (450) (RO) Long-term abilities (1.20) (400) Common stock (Si par Common stock (S20 par) (240) Additional paid in capital (1.080) (340) Retained earnings (1.260) (340) Note: Parentheses indicate a credit balance. In Moody's appraisal of Osorio, three assets were deemed to be undervalued on the subsidiary's books: Inventory by S10, Land by S40, and Buildings by S60 6. Compute the amount of consolidated buildings (net) at date of acquisition A $1,700 B. SI,760 C. $1.640. D. $1,320 E $500 7. The fair value of net identifiable assets of a reporting unit of X Company is $300,000. On X Company's books, the carrying value of this reporting unit's net assets is $350,000, including $60,000 goodwill. If the fair value of the reporting unit is $335.000, what amount of goodwill impaiment will be recognized for this unit? A. SO B. $10,000 C. $25.000 D. 535,000 8. The fair valuc of net identifiable assets of a reporting unit of Y Company is $270,000. The carrying value of the reporting unit's net assets on Y Company's books is $320.000, including $50.000 goodwill . If the reported goodwill impaiment for the unit is $10,000, what would be the fair value of the reporting unit? A. S320,000 B. $310,000 C. $270,000 D. S290,000 9. Direct combination costs and stock issuance costs are often incurred in the process of making a controlling investment in another company, How should those costs be accounted for in a pre-2009 purchase transaction? Direct Combination Corte Stock terance Corte A) Increase investment Decrease investment B) Increase Investment Decrease Pudeln Capital C) Increase levestment Increase Expenses D) Decrease Pad In Capital Increase investment E) Increase Expenses Decrease investment