On January 1, 20X8, Patriot Company acquired 100 percent of Stryder Company for $220,000 cash. The trial balances for the two companies on December 31, 20X8, included the following amounts: Patriot Corp.Stryder Corporation DebitCreditDebitCreditCash$50,000 $30,000 Accounts Receivable 60,000 40,000 Inventory 75,000 80,000 Land 60,000 40,000 Buildings and Equipment 300,000 120,000 Investment in Stryder Company 256,000 Cost of Goods Sold 270,000 170,000 Depreciation Expense 30,000 12,000 Other Expenses 80,000 63,000 Dividends

Question

Declared 40,000      15,000       Accumulated Depreciation   $120,000       $48,000  Accounts Payable    50,000        27,000  Mortgages Payable    100,000        25,000  Common Stock    200,000        100,000  Retained Earnings    200,000        70,000  Sales    500,000        300,000  Income from Subsidiary    51,000            $1,221,000 $1,221,000  $570,000   $570,000  On the acquisition date, Stryder reported net assets with a book value of $170,000. A total of $10,000 of the acquisition price is applied to goodwill, which was not impaired in 20X8. Stryder's depreciable assets had an estimated economic life of 10 years on the date of combination. The difference between fair value and book value of tangible assets is related entirely to buildings and equipment. Patriot used the equity method in accounting for its investment in Stryder. Analysis of receivables and payables revealed that Stryder owed Patriot $10,000 on December 31, 20X8.Based on the information provided, what amount of total assets will be reported in the consolidated balance sheet for the year?

A. $801,000
B. $723,000
C. $895,000
D. $1,111,000

Answer 1

Answer: B