Perry Company acquires 100% of the stock of Hurley Corporation on January 1, 2010, for $3,800 cash. As of that date Hurley has the following trial balance:

Net income and dividends reported by Hurley for 2010 and 2011 follow:

The fair value of Hurley's net assets that differ from their book values are listed below:

Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life. FIFO inventory valuation method is used.
1) Compute the consideration transferred in excess of book value acquired at January 1, 2012.
A. $150
B. $700
C. $2,200
D. $550
E. $2,900

2) Compute the amount of Hurley's inventory that would be reported in a January 1, 2012, consolidated balance sheet.
A. $800
B. $100
C. $900
D. $150
E. $0

3) Compute the amount of Hurley's buildings that would be reported in a December 31, 2012, consolidated balance sheet.
A. $1,560
B. $1,260
C. $1,440
D. $1,160
E. $1,140

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Debit Credit $500 Cash 600 800 Accounts Receivable Inventory Buildings (net) (5 year life) Equipment (net) (2 year life) 1,500 1,000 Land 900 $400 Accounts Payable Long-tem liabiļities (due 12/31/13) 1,800 1,000 Common Stock Additional paid-in capital 600 1,500 Retained eamings Total $5,300 S5,300 2010 2011 $120 Net income Dividends $100 30 40