Vader Company purchased 100 percent of the common shares of Skywalker Company by issuing shares of common stock valued at $900,000. Selected accounts from Vader's balance si at the date of combination are as follows: Inventory Building and Equipment (net) Common Stock $700,000 1,400,000 840,000 2,000,000 Retained Earnings. Selected accounts from the balance sheet of Skywalker at acquisition are as follows: Inventory Building and Equipment (net) Common Stock Additional Paid-In Capital Retained Earnings (60,000) On the date of purchase, Skywalker's inventory and buildings and equipment had fair values of $255,000 and $870,000, respectively. $200,000 900,000 450,000 450,000 Based on the information given above, the amount to be reported for inventory in the consolidated balance sheet immediately after the combination is: O 1.$1,000,000 O 2. $955,000 O 3. $900,000 O 4.$700,000 O 5. None of the above
Vader Company purchased 100 percent of the common shares of Skywalker Company by issuing shares of common stock valued at $900,000. Selected accounts from Vader's balance si at the date of combination are as follows: Inventory Building and Equipment (net) Common Stock $700,000 1,400,000 840,000 2,000,000 Retained Earnings. Selected accounts from the balance sheet of Skywalker at acquisition are as follows: Inventory Building and Equipment (net) Common Stock Additional Paid-In Capital Retained Earnings (60,000) On the date of purchase, Skywalker's inventory and buildings and equipment had fair values of $255,000 and $870,000, respectively. $200,000 900,000 450,000 450,000 Based on the information given above, the amount to be reported for inventory in the consolidated balance sheet immediately after the combination is: O 1.$1,000,000 O 2. $955,000 O 3. $900,000 O 4.$700,000 O 5. None of the above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Vader Company purchased 100 percent of the common shares of Skywalker Company by issuing shares of common stock valued at $900,000. Selected accounts from Vader's balance sheet
at the date of combination are as follows:
Inventory
Building and Equipment (net)
Common Stock
$700,000
1,400,000
840,000
Retained Earnings
Selected accounts from the balance sheet of Skywalker at acquisition are as follows:
Inventory
Building and Equipment (net)
Common Stock
Additional Paid-In Capital
Retained Earnings
(60,000)
On the date of purchase, Skywalker's inventory and buildings and equipment had fair values of $255,000 and $870,000, respectively.
2,000,000
$200,000
900,000
450,000
450,000
Based on the information given above, the amount to be reported for inventory in the consolidated balance sheet immediately after the combination is:
O 1. $1,000,000
O 2. $955,000
O 3. $900,000
4. $700,000
5. None of the above](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d8e2a92-7f14-4643-974b-2551520c0e15%2Fb48b7a56-2537-4db6-a5d7-a03dac9db924%2Fnaz55y_processed.png&w=3840&q=75)
Transcribed Image Text:Vader Company purchased 100 percent of the common shares of Skywalker Company by issuing shares of common stock valued at $900,000. Selected accounts from Vader's balance sheet
at the date of combination are as follows:
Inventory
Building and Equipment (net)
Common Stock
$700,000
1,400,000
840,000
Retained Earnings
Selected accounts from the balance sheet of Skywalker at acquisition are as follows:
Inventory
Building and Equipment (net)
Common Stock
Additional Paid-In Capital
Retained Earnings
(60,000)
On the date of purchase, Skywalker's inventory and buildings and equipment had fair values of $255,000 and $870,000, respectively.
2,000,000
$200,000
900,000
450,000
450,000
Based on the information given above, the amount to be reported for inventory in the consolidated balance sheet immediately after the combination is:
O 1. $1,000,000
O 2. $955,000
O 3. $900,000
4. $700,000
5. None of the above
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