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 approximated fair value except for land, which had a fair value of $45,000. what is the goodw total that should appear in the consolidated balance sheet prepared immediately after the business combination? Select one: a. 23,000 b. 38,000 c. 43,000 d. 58,000
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 approximated fair value except for land, which had a fair value of $45,000. what is the goodw total that should appear in the consolidated balance sheet prepared immediately after the business combination? Select one: a. 23,000 b. 38,000 c. 43,000 d. 58,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 24E
Related questions
Question
![se
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
cion
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
approximated fair value except for land, which had a fair value of $45,000. what is the goodwil
total that should appear in the consolidated balance sheet prepared immediately after the
business combination?
Select one:
a. 23,000
b. 38,000
c. 43,000
d. 58,000
W
P.
hp](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faa7a85b0-ac04-432c-a06b-66a472081830%2F6b5f313a-6cb4-48c8-9e49-9673bc69a0c5%2Fmejyyzr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:se
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
cion
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
approximated fair value except for land, which had a fair value of $45,000. what is the goodwil
total that should appear in the consolidated balance sheet prepared immediately after the
business combination?
Select one:
a. 23,000
b. 38,000
c. 43,000
d. 58,000
W
P.
hp
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![Auditing: A Risk Based-Approach (MindTap Course L…](https://www.bartleby.com/isbn_cover_images/9781337619455/9781337619455_smallCoverImage.gif)
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![Auditing: A Risk Based-Approach (MindTap Course L…](https://www.bartleby.com/isbn_cover_images/9781337619455/9781337619455_smallCoverImage.gif)
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning