Bullen Inc. acquired 100% of the voting common stock of Vicker Inc. on January 1, 2018. The book value and fair value of Vicker's accounts on that date (prior to creating the combination) are as follows, along with the book value of Bullen's accounts: BullenBook ValueVickerBook ValueVickerFair ValueRetained earnings, 1/1/20$250,000$240,000 Cash and receivables 170,000 70,000$70,000Inventory 230,000 170,000 210,000Land 280,000 220,000 240,000Buildings (net) 480,000 240,000 270,000Equipment (net) 120,000 90,000 90,000Liabilities 650,000 430,000 420,000Common stock 360,000 80,000 Additional paid-in capital 20,000 40,000 ?Assume that Bullen issued preferred stock with a par value of $240,000 and a fair value of $500,000 for all of the outstanding shares of
Vicker in an acquisition business combination. What will be the balance in the consolidated Inventory and Land accounts?
A. $440,000, $496,000.
B. $425,000, $505,000.
C. $400,000, $500,000.
D. $440,000, $520,000.
E. $427,000, $510,000.
Answer: D
You might also like to view...
Susana keeps a close eye on her company's internal and external environment to discover possible opportunities for new products and to discern possible threats from the competition. In which activity is Susana engaged?
A. the synergistic approach B. environmental scanning C. corporate spying D. management by observation E. competitive intelligence
For a statement of changes in net worth, which of the following would be a realized decrease in net worth?
a. Dividend income b. Change in value of land c. Decrease in value of boat d. Personal expenditures e. Salary
The market interest rate related to a bond is also called the
A) stated interest rate B) effective interest rate C) contract interest rate D) straight-line rate
If actual fixed overhead was $98,400 and there was a $2,880 favorable spending variance and a $600 unfavorable volume variance, budgeted fixed overhead must have been
A) $101,280 B) $100,680 C) $99,000 D) $97,800 E) $95,520