Postage Corporation acquired 75 percent of Stamp Corporation's common stock on December 31, 20X8, for $300,000. The fair value of the noncontrolling interest at that date was determined to be $100,000. Stamp's balance sheet immediately before the combination reflected the following balances: Cash and Receivables$40,000 Inventory 70,000 Land 90,000 Buildings and Equipment (net) 250,000 Total Assets$450,000 Accounts Payable$30,000 Income Taxes Payable 40,000 Bonds Payable 100,000 Common Stock 100,000 Retained Earnings 180,000 Total Liabilities and Stockholders' Equity$450,000 A careful review of the fair value of Stamp's assets and liabilities indicated that inventory, land, and buildings and equipment (net) had fair values of $65,000, $100,000, and, $300,000
respectively. Goodwill is assigned proportionately to Postage and the noncontrolling shareholders.Based on the preceding information, what amount of Stamp's inventory will be included in the consolidated balance sheet immediately following the acquisition?
A. $70,000
B. $60,000
C. $65,000
D. $0
Answer: C
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