What amount of total stockholders equity will be reported? a. $407,500 b. $547,500 c. $844,000 d. $1,249,000
Question:
What amount of total stockholders’ equity will be reported?
a. $407,500
b. $547,500
c. $844,000
d. $1,249,000
Pocket Corporation acquired 100 percent of Strap Corporation’s common stock on December 31, 20X2. Balance sheet data for the two companies immediately following the acquisition follow:
At the date of the business combination, the book values of Strap’s net assets and liabilities approximated fair value except for inventory, which had a fair value of $85,000, and land, which had a fair value of $45,000.
Required
Indicate the appropriate total that should appear in the consolidated balance sheet prepared immediately after the business combination.
Step by Step Answer:
Advanced Financial Accounting
ISBN: 9781260165111
12th Edition
Authors: Theodore Christensen, David Cottrell, Cassy Budd