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Salem Co. had the following account balances as of December 1, 2010: Inventory $720,000 Land $600,000 Building net (valued at $1,200,000) $1,080,000 Common Stock ($10
Salem Co. had the following account balances as of December 1, 2010: Inventory $720,000 Land $600,000 Building net (valued at $1,200,000) $1,080,000 Common Stock ($10 par value) $96,000 Retained earnings, Decemeber 1, 2010 $1,320,000 Revenue $720,000 Expenses $600,000 Bellington Inc. transferred $1.7 million in cash and 12,000 shares of its newly issued $30 par value common stock (valued at $90 per share) to acquire all of Salem's outstanding common stock.Assume that Bellington paid cash of $2.8 million. No stock is issued. An additional $50,000 is paid in direct combination costs.Required:For Goodwill, determine what balance would be included in a December 1, 2010 consolidation
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