Perry Company acquires 100% of the stock of Hurley Corporation on January 1, 2017, for $3,800 cash. As of that date Hurley has the following trial balance: Debit CreditCash$500 Accounts receivable 600 Inventory 800 Buildings (net) (5 year life) 1,500 Equipment (net) (2 year life) 1,000 Land 900 Accounts payable $400 Long-term liabilities (due 12/31/20) 1,800 Common stock 1,000 Additional paid-in capital 600 Retained earnings 1,500 Total$5,300 $5,300 ??Net income and dividends reported by Hurley for 2017 and 2018 follow:? 20172018Net income$100 $120 Dividents 30 40 ??The fair value of Hurley's net assets that differ from their book values are listed
below:? Fair ValueBuildings$1,200 Equipment 1,250 Land 1,300 Long-term liabilities 1,700 ? ?Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life .?Compute the amount of Hurley's equipment that would be reported in a December 31, 2017, consolidated balance sheet.
A. $1,250.
B. $750.
C. $875.
D. $1,125.
E. $1,000.
Answer: D
You might also like to view...
Lenora is a sales representative for a media technology company. She is demonstrating to Katrina, the CEO of a multinational textile manufacturing company, how she can address her various international locations using a screen mounted to a remotely controlled device that can move around a room. The device uses video conferencing technology that will allow Katrina to deliver presentations and also to converse with individuals. This type of technology is called a(n) ______.
a. interactive android b. telepresence robot c. bionic interactional device d. mobile video conference
The table depicts a production line that has been balanced with a takt time of 2 minutes. If you could hire another six workers, which of these systems would result in the highest output rate?
Workstation 1 2 3 4 5 6 Task A, B C D, E, F G, H I J, K, L Time (min) 1, 1 1.8 1, 0.5, 0.4 0.9, 0.8 1.8 0.5, 0.5, 0.6 A) simply duplicating the existing line so you had two lines doing exactly the same thing B) assigning one worker to each activity and creating a single twelve station production line C) keeping the existing balance and assigning three workers to stations 1, two workers to station 2, two workers to station 3, one worker to station 4, two workers to station 5, and two workers to station 6 D) you would be indifferent between alternatives a and b
A company had beginning inventory of 10 units at a cost of $20 each on March 1. On March 2, it purchased 10 units at $22 each. On March 6 it purchased 6 units at $25 each. On March 8, it sold 22 units for $54 each. Using the perpetual FIFO inventory method, what was the cost of the 22 units sold?
A. $470 B. $450 C. $520 D. $570 E. $490
Why is LAN design a cyclical process?
What will be an ideal response?