On January 1, 2014, Gulliver Corporation acquired 80 percent of Sea-Gull Company's common stock for $160,000 cash.
Question:
On January 1, 2014, Gulliver Corporation acquired 80 percent of Sea-Gull Company's common stock for $160,000 cash. The fair value of the noncontrolling interest at that date was determined to be $40,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:
At the date of the business combination, the book values of Sea-Gull's net assets and liabilities approximated fair value except for inventory, which had a fair value of $45,000, and land, which had a fair value of $60,000.
Based on the preceding information, what amount of total inventory will be reported in `the consolidated balance sheet prepared immediately after the business combination?
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Based on the preceding information, what amount of goodwill will be reported in the consolidated balance sheet prepared immediately after the business combination?
Based on the preceding information, what amount of total assets will be reported in the consolidated balance sheet prepared immediately after the business combination?
Based on the preceding information, what amount will be reported as noncontrolling interest in the consolidated balance sheet prepared immediately after the business combination?
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni