Question
Top Corporation acquired 100 % of Sun Corporations common stock on December 31,2019. Balance sheet data for the two companies immediately following the acquisition TOP
Top Corporation acquired 100 % of Sun Corporations common stock on December 31,2019. Balance sheet data for the two companies immediately following the acquisition
TOP SUN
Cash $ 49,000 $ 30,000
Accounts Receivable 110,000 45,000
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
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 $405,000
At the date of the business combination, the book values of Suns net assets and liabilities approximated fair value except for inventory, which had a fair value$ 85,000 and land, which had a fair value of $45,000 . indicate the total consolidated retained earning that should appear in the consolidated balance sheet prepared immediately after the business combination?
Select one: a. 347,500 b. 397,500 c. 547,500 d. 257,500
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