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
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 12/31/13)		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 2010 and 2011 follow:

	2010	2011
Net income	$100	$120
Dividends	30	40

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

	Fair Value
Inventory	$900
Buildings	1,200
Equipment	1,250
Land	1,300
Long-term liabilities	1,700

Any exess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life. FIFO inventory valuation method is used.

1) Compute the consideration transferred in excess of book value acquired at January 1, 2010.

A. $150

B. $700

C. $2,200

D. $550

E. $2,900

2) 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

3) 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