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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Use the following information to answer question(s) below. On January 1, 2011, Punch Corporation purchased 80% of the common stock of Soopy Co. Separate balance sheet data for the companies at the acquisition date(after the acquisition) are given below:PunchSoopy Cash $34,000 $206,000 Accounts Receivable 144,000 26,000 Inventory 132,000 38,000 Land 68,000 32,000 Plant assets 700,000 300,000 Accum. Depreciation (240,000) (60,000) Investment in Soopy392,000Total assets$1,230,000 $ 542,000 Accounts payable $206,000 $142,000 Capital stock 800,000300,000 Retained earnings224,000 100,000Total liabilities & equities$ 1,230,000 $ 542,000 At the date of the acquisition, the book values of Soopy's net assets were equal to the fair value except for Soopy's inventory, which had a fair value of $60,000.

Determine below what the consolidated balance would be for each of the requested accounts. What amount of Inventory will be reported?

User Dolinda
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Answer:

Consider the following explanation

Step-by-step explanation:

  • consolidated balance

Cash 240,000

Accounts Receivable 170000

Inventory 192,000

Land 100000

Plant assets-net 700,000

Goodwill 68000

Total assets 1,470,000

  • Total liabilities: 206,000 + 142,000 = 348,000

User Zvikico
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