Question
WILKINS INC ACQUIRED 100% OF THE VOITING COMMON STOCK OF GRANGER INC ON 1/1/21. THE BOOK VALUE AND FAIR VALUE OF GRANGER'S ACCOUNTS ON THAT
WILKINS INC ACQUIRED 100% OF THE VOITING COMMON STOCK OF GRANGER INC ON 1/1/21. THE BOOK VALUE AND FAIR VALUE OF GRANGER'S ACCOUNTS ON THAT DATE (PRIOR TO CREATIN G THE COMBINATION) ARE AS FOLLOWS, ALONG WITH THE BOOK VALUE OF WILKIN'S ACCOUNTS
WILKINS BOOK VALUE GRANGER BOOK VALUE GRANGER FAIR VALUE
RETAINED EARNINGS (1/1/21) 250,000 240,000
CASH/RECEIVABLES 170,000 70,000 70,000
INVENTORY 230,000 180,000 210,000
LAND 320,000 220,000 240,000
BUILDING (NET) 480,000 240,000 280,000
EQUIPMENT (NET) 120,000 90,000 90,000
LIABILITIES 650,000 440,000 430,000
COMMON STOCK 360,000 80,000
APIC 60,000 40,000
ASUME THAT WILKINS ISSUED PREFERRED STOCK WITH A PAR VALUE OF $260,000 AND A FAIR VALUE OF $500,000 FOR ALL OF THE OUTSTANDING SHARES OF GRANGER IN AN ACQUISTION BUSINESS COMBINATION. WHAT WILL BE THE BALANCE IN THE CONSOLIDATED INVENTORY AND LAND ACCOUNTS
440,000/540,000
440,000/560,000
410,000/540,000
410,000/560,000
390,000/460,000
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