X co, purchased 100% of Y Common stock at 1/1/2020 for $ 300,000 ,on the same date the y co stock was $ 100,000 and retained earning $120,000 , at acquisition date the net assets of y co. book value was equal to fair value except ( inventory FV more than BV of $26,000) and (land its FV more than BV10,000 ) (Building its FV more than BV by $ 14,000 ) but ( equipment its FV less than B V by $10,000) if Y CO. reported $160,000 net income for 31/12/2020 and paid $ 60,000 dividends . Other information 1- the Y inventory 50% sold during 2020 2- the building useful life was 7 years , but equipment 5 years 3- there is no impairment for goodwill during 2020 if inventory balance in 31/12/2020 in parent co 60,000 & in subsidiary co 50,000 what is amount of inventory in consolidated balance sheet in 31/12/2020 Select one: a. 110,000 b. 123,000 c. 136,000 d. 97,000
X co, purchased 100% of Y Common stock at 1/1/2020 for $ 300,000 ,on the same date the y co stock was $ 100,000 and retained earning $120,000 , at acquisition date the net assets of y co. book value was equal to fair value except ( inventory FV more than BV of $26,000) and (land its FV more than BV10,000 ) (Building its FV more than BV by $ 14,000 ) but ( equipment its FV less than B V by $10,000) if Y CO. reported $160,000 net income for 31/12/2020 and paid $ 60,000 dividends . Other information 1- the Y inventory 50% sold during 2020 2- the building useful life was 7 years , but equipment 5 years 3- there is no impairment for goodwill during 2020 if inventory balance in 31/12/2020 in parent co 60,000 & in subsidiary co 50,000 what is amount of inventory in consolidated balance sheet in 31/12/2020 Select one: a. 110,000 b. 123,000 c. 136,000 d. 97,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
X co, purchased 100% of Y Common stock at 1/1/2020 for $ 300,000 ,on the same date the y co stock was $ 100,000 and retained earning $120,000 , at acquisition date the net assets of y co. book value was equal to fair value except ( inventory FV more than BV of $26,000) and (land its FV more than BV10,000 ) (Building its FV more than BV by $ 14,000 )
but ( equipment its FV less than B V by $10,000) if Y CO. reported $160,000 net income for 31/12/2020 and paid $ 60,000 dividends .
Other information
1- the Y inventory 50% sold during 2020
2- the building useful life was 7 years , but equipment 5 years
3- there is no impairment for goodwill during 2020
if inventory balance in 31/12/2020 in parent co 60,000 & in subsidiary co 50,000 what is amount of inventory in consolidated balance sheet in 31/12/2020
Select one:
a. 110,000
b. 123,000
c. 136,000
d. 97,000
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