Perry Company acquires 100% of the stock of Hurley Corporation on January 1, 2017, for $3,800 cash. As of that date Hurley has the following trial balance:

	Debit				Credit
Cash	$	500
Accounts receivable		600
Inventory		800
Buildings (net) (5 year life)		1,500
Equipment (net) (2 year life)		1,000
Land		900
Accounts payable					$	400
Long-term liabilities (due 12/31/20)						1,800
Common stock						1,000
Additional paid-in capital						600
Retained earnings						1,500
Total	$	5,300			$	5,300

Net income and dividends reported by Hurley for 2017 and 2018 follow:

	2017			2018
Net income	$	100		$	120
Dividents		30			40

The fair value of Hurleys net assets that differ from their book values are listed below:

	Fair Value
Buildings	$	1,200
Equipment		1,250
Land		1,300
Long-term liabilities		1,700

Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life .

1. Compute the amount of Hurley's inventory that would be reported in a January 1, 2017, consolidated balance sheet.

Multiple Choice

a. $800.

b. $100.

c. $900.

d. $150.

e. $0.

2. Compute the amount of Hurley's buildings that would be reported in a December 31, 2017, consolidated balance sheet.

Multiple Choice

a. $1,560.

b. $1,260.

c. $1,440.

d. $1,160.

e. $1,140.

3. Compute the amount of Hurley's buildings that would be reported in a December 31, 2018, consolidated balance sheet.

Multiple Choice

a. $1,620.

b. $1,380.

c. $1,320.

d. $1,080.

e. $1,500.