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Question 3. (28 points - 4 points each) Peony Corporation acquired 100 percent of Skipper Corporation's common stock for $89,000 on January 1, 2021. Balance

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Question 3. (28 points - 4 points each) Peony Corporation acquired 100 percent of Skipper Corporation's common stock for $89,000 on January 1, 2021. Balance sheet data for the companies immediately following the acquisition follow: ASSETS Cash Receivables Peony Corporation $22,500 37.500 22,700 75,000 103,000 89,000 $349,700 Skipper Company $8,000 24,000 15,700 52.000 74 300 $174.000 Inventory Land Buildings and equipment, Net Investment in Subsidiary Total Assets LIABILITIES AND EQUITY Accounts Payable Notes Payable Bonds payable Common Stock Retained Earnings Total Liabilities and Equity $30,000 74,200 103,700 95,000 46,800 $349,700 $30,000 35.000 37,000 42.000 30,000 $174,000 At the date of the business combination, the book values of Skipper's net assets and liabilities approximated fair value except for building and equipment which had a fair value of $83,000 inventory, which had a fair value of $13,500, and land, which had a fair value of $58,000. Required a. At what amount should notes payable be reported in the consolidated balance sheet prepared immediately after the business combination? b. At what amount should inventory be reported in the consolidated balance sheet prepared immediately after the business combination? c. At what amount should land be reported in the consolidated balance sheet prepared immediately after the business combination? d. What amount of retained earnings will be reported in the consolidated balance sheet prepared Immediately after the business combination? e. What will be the balance of Investment in Subsidiary will be reported in the consolidated balance sheet? f. What amount of goodwill will be reported in the consolidated balance sheet prepared immediately after the business combination? At what amount should total assets be reported in the consolidated balance sheet prepared immediately after the business combination? Course Title: Advanced Financial Accounting Course Code: ACT 460 51Page

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