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Balance sheets for Fort Corporation and Steele Company on December 31, 2008, before acquisition, are as follows: Fort Steele Cash and Receivables $ 700,000 Inventory Land $240,000 320,000 60,000 720,000 Buildings and Equipment (net) Total 110,000 _510,000 $2.040,000 160,000 $780.000 $ 140,000 Current Payables Long-term Payables 60,000 320,000 200,000 420,000 600,000 880,000 $2,040,000 Common Stock Retained Earnings 200,000 $780,000 Total Note that Steele owed Fort $20,000 on account on 12/31; this amount is reflected in the above balances. Fort Corporation acquired 80 percent of Steele Company's outstanding stock for $450,000 cash on January 1, 2009. On that date, the fair value of Fort's depreciable assets was $600,000 and the fair value of Steele's depreciable assets was $280,000.

Balance sheets for Fort Corporation and Steele Company on December 31, 2008, before acquisition, are as follows: Fort Steele Cash and Receivables $ 700,000 Inventory Land $240,000 320,000 60,000 720,000 Buildings and Equipment (net) Total 110,000 _510,000 $2.040,000 160,000 $780.000 $ 140,000 Current Payables Long-term Payables 60,000 320,000 200,000 420,000 600,000 880,000 $2,040,000 Common Stock Retained Earnings 200,000 $780,000 Total Note that Steele owed Fort $20,000 on account on 12/31; this amount is reflected in the above balances. Fort Corporation acquired 80 percent of Steele Company's outstanding stock for $450,000 cash on January 1, 2009. On that date, the fair value of Fort's depreciable assets was $600,000 and the fair value of Steele's depreciable assets was $280,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Balance sheets for Fort Corporation and Steele Company on December 31, 2008, before acquisition, are as follows: Fort Steele Cash and Receivables $ 700,000 720,000 $240,000 Inventory 320,000 Land 110,000 60,000 Buildings and Equipment (net). 510,000 160,000 Total $2.040.000 $780,000 Current Payables $ 140,000 60,000 Long-term Payables Common Stock 420,000 600,000 320,000 200,000 Retained Earnings 880,000 $2,040,000 200,000 $780.000 Total Note that Steele owed Fort $20,000 on account on 12/31; this amount is reflected in the above balances. Fort Corporation acquired 80 percent of Steele Company's outstanding stock for $450,000 cash on January 1, 2009. On that date, the fair value of Fort's depreciable assets was $600,000 and the fair value of Steele's depreciable assets was $280,000.
Transcribed Image Text:Balance sheets for Fort Corporation and Steele Company on December 31, 2008, before acquisition, are as follows: Fort Steele Cash and Receivables $ 700,000 720,000 $240,000 Inventory 320,000 Land 110,000 60,000 Buildings and Equipment (net). 510,000 160,000 Total $2.040.000 $780,000 Current Payables $ 140,000 60,000 Long-term Payables Common Stock 420,000 600,000 320,000 200,000 Retained Earnings 880,000 $2,040,000 200,000 $780.000 Total Note that Steele owed Fort $20,000 on account on 12/31; this amount is reflected in the above balances. Fort Corporation acquired 80 percent of Steele Company's outstanding stock for $450,000 cash on January 1, 2009. On that date, the fair value of Fort's depreciable assets was $600,000 and the fair value of Steele's depreciable assets was $280,000.
a 5. Based on the information given above, what amount of total assets will be reported in a consolidated balance sheet prepared immediately following the combination? A) B) C) $2,512,500. $2,930,000. $2,950,000. $3,020,000. a 6. Based on the information given above, what amount of total liabilities will be reported in a consolidated balance sheet prepared immediately following the combination? A) B) $825,000. $845,000. $920,000. $940,000. D)
Transcribed Image Text:a 5. Based on the information given above, what amount of total assets will be reported in a consolidated balance sheet prepared immediately following the combination? A) B) C) $2,512,500. $2,930,000. $2,950,000. $3,020,000. a 6. Based on the information given above, what amount of total liabilities will be reported in a consolidated balance sheet prepared immediately following the combination? A) B) $825,000. $845,000. $920,000. $940,000. D)
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