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) 1,500

Equipment (2 year life) 1,000

Land 900

A/P 400

long term liabilities (due 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 for 2010 and 2011:

2010 2011

Net income 100 120

Dividends 30 40

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

Fair value

Inventory 900

Bulidings 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 consideration transferred in excess of book value acquired at January 1, 2010.

A.

$150.

B.

$700.

C.

$2,200.

D.

$550.

E. 2900 I need an answer and solution for this question please