Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 26 Top Corporation acquired 100 % of Sun Corporation's common stock on December 31,2019. Balance sheet data for the two companies immediately following the

image text in transcribed
image text in transcribed
Question 26 Top Corporation acquired 100 % of Sun Corporation's common stock on December 31,2019. Balance sheet data for the two companies immediately following the acquisition Not yet answered TOP SUN Marked out of Cash $ 49,000 1.00 $ 30,000 Accounts Receivable 110,000 Remove flag 45,000 Inventory 130,000 70,000 25,000 Land 80,000 Buildings & Equipment 277,000 Investment in Sun Corporation 198,000 Total Assets $844,000 235,000 $405,000 Accounts Payable $ 61,500 $ 28,000 Taxes Payable 95,000 37,000 Bonds Payable 280,000 200,000 Common Stock 150,000 50,000 Retained Earnings 257,500 90,000 Total $844,000 $405,000 At the date of the business combination, the book values of Sun's net assets and liabilities approximated fair value except for inventory, which had a fair values 85,000 and land, which had a fair value of $45,000. the total inventory that should appear in the consolidated balance sheet prepared immediately after the business combination? Select one: a. 200,000 b. 185,000 c. 130,000 Windows d. 215,000 -30 Top Corporation acquired 100% of Sun Corporation's common stock on December 31, 2019. Balance sheet data for the two companies immediately following the acquisition TOP SUN out of Cash $ 49,000 $ 30,000 Accounts Receivable 110,000 45,000 question Inventory 130,000 70,000 Land 80,000 25,000 Buildings & Equipment 277,000 235,000 Investment in Sun Corporation 198,000 Total Assets $844,000 $405,000 Accounts Payable $ 61,500 $ 28,000 95,000 37,000 Taxes Payable Bonds Payable 280,000 200,000 Common Stock 150,000 50,000 Retained Eamings 257,500 90,000 Total $844,000 $405,000 At the date of the business combination, the book values of Sun's net assets and liabilities approximated fair value except for land, which had a fair value of $45,000. what is the goodwill total that should appear in the consolidated balance sheet prepared immediately after the business combination? Select one: a. 23,000 b. 58,000 C. 43,000 indows hou d. 38,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Defense A Management Audit Readiness Guide

Authors: Ed Danter

1st Edition

3030924653, 978-3030924652

More Books

Students also viewed these Accounting questions

Question

Describe four types of wireless media.

Answered: 1 week ago

Question

3. Define the roles individuals play in a group

Answered: 1 week ago