On December 31, 20X9, Pluto Company acquired 100 percent of Saturn Corporation's common stock for $300,000. Balance sheet information for Saturn just prior to the acquisition is given here: Cash and Receivables$35,000 Inventory 75,000 Land 100,000 Buildings and Equipment (net) 220,000 Total Assets$430,000 Accounts Payable $65,000 Bonds Payable 150,000 Common Stock 100,000 Retained Earnings 115,000 Total Liabilities and Stockholders' Equity$430,000 At the date of the business combination, Saturn's net assets and liabilities approximated fair value except for inventory, which had a fair value of $60,000, land which had a fair value of $125,000, and buildings and equipment (net), which had a fair value of $250,000.Based on the information provided, what amount will be
included as Investment in Saturn Corporation in the consolidated balance sheet immediately following the acquisition?
A. $300,000
B. $0
C. $395,000
D. $255,000
Answer: B
You might also like to view...
Michael is the CEO of a company that is expanding overseas. He considers introducing a cafeteria-style benefits plan to cater to the company's diverse workforce. However, the HR team brings up the concern of higher expenses involved in this type of benefits. What is Michael likely to do to lower costs at the initial stage?
A. discourage employees from choosing lower-cost options B. use software packages to design the plan C. opt for communication methods that do not stress the value of each benefit D. avoid standardized plans available for employers opting for cafeteria-style benefits E. encourage employees to choose benefits they need the most
General-purpose external financial statements that are divided into subcategories are called classified financial statements
Indicate whether the statement is true or false
The process of conveyance of a deed is called the:
A) zoning meeting. B) closing. C) title search. D) recordation.
Zeus is an example of which of the following?
A) SQL injection attack B) browser parasite C) DDoS attack D) Trojan horse/botnet