Top Corporation acquired 100% of Sun Corporations common stock on December 31, 2002. Balance sheet data for the two companies immediately following the acquisition is:

Item	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	500,000	400,000
Less: Acc. Depr	(223,000)	(165,000)
Investment in Sun	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 Liabilities & Equity	844,000	405,000

At the date of the business combination, the book value of Sun's net assets and liabilities were equal to their fair values except for inventory, which had fair value of $85,000 and land which had a fair value of $45,000. All of the Sub's inventory was sold 2003. There was no impairment to goodwill in 2002 or 2003.

1. What is the fair value of consideration given by Top in exchange for 100% of Sun Corporation's common stock? 198,000

2. What amount of goodwill would be reported?

3. What amount of inventory would appear in the consolidated balance sheet prepared immediately after the business combination? 215,000

4. What amount of total liabilities would appear in the consolidated balance sheet prepared immediately after the business combination? 701,500

5. What amount of consolidated retained earnings would appear in the consolidated balance sheet prepared immediately after the business combination? 257,500

6. What amount of total stockholders equity would appear in the consolidated balance sheet prepared immediately after the business combination?

7. What is the total value of the differential at 12/31/2002?

8. What is the total value of the differential at 12/31/2003?

9. How much amortization expense should be recorded in the eliminating entries in 2002?

10. How much amortization expense should be recorded in the eliminating entries in 2003? 15,000