Top Corporation acquired 100 percent of Sun Corporation€™s common stock on December 31, 20X2. Balance sheet data for the two companies immediately following the acquisition follow:

At the date of the business combination, the book values of Sun€™s net assets and liabilities approximated fair value except for inventory, which had a fair value of $85,000, and land, which had a fair value of $45,000.

Required
For each question, indicate the appropriate total that should appear in the consolidated balance sheet prepared immediately after the business combination.
1. What amount of inventory will be reported?
a. $70,000.
b. $130,000.
c. $200,000.
d. $215,000.
2. What amount of goodwill will be reported?
a. $0.
b. $23,000.
c. $43,000.
d. $58,000.
3. What amount of total assets will be reported?
a. $84,400.
b. $1,051,000.
c. $1,109,000.
d. $1,249,000.
4. What amount of total liabilities will be reported?
a. $265,000.
b. $436,500.
c. $701,500.
d. $1,249,000.
5. What amount of consolidated retained earnings will be reported?
a. $547,500.
b. $397,500.
c. $347,500.
d. $257,500.
6. What amount of total stockholders€™ equity will be reported?
a. $407,500.
b. $547,500.
c. $844,000.
d.$1,249,000.

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Top Sun Item Corporation Corporation S 49,000 110,000 130,000 80,000 500,000 (223,000) 198,000 $30,000 45,000 70,000 25,000 400,000 (165,000) Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Investment in Sun Corporation Stock Total Assets $844 000 $405,000 Accounts Payable Taxes Payable Bonds Payable Common Stock Retained Earnings Total Liabilities & Stockholders Equity 61,500 95,000 280,000 150,000 257,500 $ 28,000 37,000 200,000 50,000 90,000 $405,000 2 $844 000