Princeton Company acquired 75 percent of the common stock of Sheffield Corporation on December 31, 2011. On the date of acquisition, Princeton held land with a book value of $150,000 and a fair value of $300,000; Sheffield held land with a book value of $100,000 and fair value of $500,000. What amount would land be reported in the consolidated balance sheet prepared immediately after the combination?

a.$650,000

b.$500,000

c.$550,000

d.$375,000

On January 1, 2011, Primer Corporation acquired 80 percent of Sutter Corporation's voting common stock. Sutters's buildings and equipment had a book value of $300,000 and a fair value of $350,000 at the time of acquisition. At what amount will Sutters buildings and equipment will be reported in the consolidated statements ?

	a.	$280,000
	b.	$340,000
	c.	$300,000
	d.	$350,000

P Company purchased the net assets of S Company for $225,000. On the date of P's purchase, S Company had no investments in marketable securities and $30,000 (book and fair value) of liabilities. The fair values of S Company's assets, when acquired, were

Currentassets $120,000

Noncurrentassets 180,000

Total $300,000

How should the $45,000 difference between the fair value of the net assets acquired ($270,000) and the consideration paid ($225,000) be accounted for by P Company?

	a.	An ordinary gain of $45,000 should be recorded.
	b.	The $45,000 difference should be credited to retained earnings.
	c.	The current assets should be recorded at $102,000, and the noncurrent assets should be recorded at $153,000.
	d.	The noncurrent assets should be recorded at $ 135,000.