Question
Top Corporation acquired 100% of Sun Corporations common stock on December 31,20x2. Balance sheet data for the two companies immediately following the acquisition TOP SUN
Top Corporation acquired 100% of Sun Corporations common stock on December 31,20x2. 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 total stockholders equity$45,000 .For each question. indicate the total stockholders equity that should appear in the consolidated balance sheet prepared immediately after the business combination?
Select one: a. 844,000 b. 407,500 c. 547,500 d. 1,249,000
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