On January 1, 20X9, Paradox Company acquired all of Sirius Company's common shares, for $365,000 cash. On that date, Sirius's balance sheet appeared as follows: Assets Liabilities Cash and Receivables$50,000 Current Payables$30,000 Inventory 80,000 Notes Payable 50,000 Land 50,000 Stockholders' Equity Buildings and Equipment(net) 200,000 Common Stock 100,000 Additional Capital 150,000 Retained Earnings 50,000 Total$380,000 Total$380,000 The fair values of all of Sirius's assets and liabilities were equal to their book values except for inventory that had a fair value of $85,000, land that had a fair value of $60,000, and buildings and equipment that had a fair value of $250,000. Buildings and equipment have a remaining useful life of 10 years with
zero salvage value. Paradox Company decided to employ push-down accounting for the acquisition. Subsequent to the combination, Sirius continued to operate as a separate company.Based on the preceding information, what amount of differential will arise in the consolidation process?
A. $15,000
B. $0
C. $65,000
D. $5,000
Answer: B
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Disaffirmance is the legal avoidance, or setting aside, of a contractual obligation.?
Indicate whether the statement is true or false
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