Top Corporation acquired 100 % of Sun Corporation’s common stock on December 31,2019. Balance sheet data for the two companies immediately following the acquisition TOP SUN Cash $ 49,000 $ 30,000 Accounts Receivable 110,000 45,000 Inventory 130,000 70,000 Land 80,000 25,000 Buildings & Equipment 277,000 235,000 Investment in Sun Corporation 198,000 Total Assets $844,000 $405,000 Accounts Payable $ 61,500 $ 28,000 Taxes Payable 95,000 37,000 Bonds Payable 280,000 200,000 Common Stock 150,000 50,000 Retained Earnings 257,500 90,000 Total $844,000 $405,000 At the date of the business combination, the book values of Sun’s net assets and liabilities equal to fair value except for inventory, which had a fair value$ 85,000 and land, which had a fair value of $45,000 ,what is the total assets that should appear in the consolidated balance sheet prepared immediately after the business combination? Select one: a. 1,086,000 b. 1,109,000 c. 1,074,000 d. 1,051,000
Top Corporation acquired 100 % of Sun Corporation’s common stock on December 31,2019. Balance sheet data for the two companies immediately following the acquisition TOP SUN Cash $ 49,000 $ 30,000 Accounts Receivable 110,000 45,000 Inventory 130,000 70,000 Land 80,000 25,000 Buildings & Equipment 277,000 235,000 Investment in Sun Corporation 198,000 Total Assets $844,000 $405,000 Accounts Payable $ 61,500 $ 28,000 Taxes Payable 95,000 37,000 Bonds Payable 280,000 200,000 Common Stock 150,000 50,000 Retained Earnings 257,500 90,000 Total $844,000 $405,000 At the date of the business combination, the book values of Sun’s net assets and liabilities equal to fair value except for inventory, which had a fair value$ 85,000 and land, which had a fair value of $45,000 ,what is the total assets that should appear in the consolidated balance sheet prepared immediately after the business combination? Select one: a. 1,086,000 b. 1,109,000 c. 1,074,000 d. 1,051,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Top Corporation acquired 100 % of Sun Corporation’s common stock on December 31,2019. Balance sheet data for the two companies immediately following the acquisition
TOP SUN
Cash $ 49,000 $ 30,000
Accounts Receivable 110,000 45,000
Inventory 130,000 70,000
Land 80,000 25,000
Buildings & Equipment 277,000 235,000
Investment in Sun Corporation 198,000
Total Assets $844,000 $405,000
Accounts Payable $ 61,500 $ 28,000
Taxes Payable 95,000 37,000
Bonds Payable 280,000 200,000
Common Stock 150,000 50,000
Retained Earnings 257,500 90,000
Total $844,000 $405,000
At the date of the business combination, the book values of Sun’s net assets and liabilities equal to fair value except for inventory, which had a fair value$ 85,000 and land, which had a fair value of $45,000 ,what is the total assets that should appear in the consolidated balance sheet prepared immediately after the business combination?
Select one:
a. 1,086,000
b. 1,109,000
c. 1,074,000
d. 1,051,000
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