Perry Company acquires 100% of the stock of Hurley Corporation on January 1, 2010, for $3,800 cash. As of that date Hurley has the following trial balance; debit credit

cash 500

A/R 600

Inventory 800

buildings (5 year life) 1500

equipment (2 year life) 1000

land 900

A/P 400

long term liabilities (12/31/13) 1800

common stock 1000

additional paid in capital 600

retained earnings 1500

total 5300 5300

Net income and dividends reported by Hurley's for 2010 and 2011:

2010 2011

net income 100 120

dividends 30 40

The fair value of Hurley's net asset that differ from book value is as follow:

Fair value

Inventory 900

builidng 1200

equipment 1250

land 1300

long term liabilities 1700

Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life. FIFO inventory valuation method is used. Compute the amount of Hurley's inventory that would be reported in a January 1, 2010, consolidated balance sheet.

A.

$800.

B.

$100.

C.

$900.

D.

$150.

E.

$0.

Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life. FIFO inventory valuation method is used. Compute the amount of Hurley's land that would be reported in a December 31, 2011, consolidated balance sheet.

A.

$900.

B.

$1,300.

C.

$400.

D.

$1,450.

E.$2,200 i need solution with answers for this question please.