On January 1, 2014, Punch Corporation purchased 100% of the common stock of Soopy Co. Separate balance sheet data for the companies at the acquisition date (after the acquisition) are given below: Punch Soopy Cash $34,000 $206,000 A/R 144,000 26,000 Inventory 132,000 38,000 Land 68,000 32,000 Plant assets 460,000 240,000 Investment in Soopy 392,000 Accounts payable $206,000 $142,000 Capital stock 800,000 300,000 Retained earnings 224,000 100,000 Total liabilities & equities $ 1,230,000 $ 542,000 At the date of the acquisition, the book values of Soopy net assets were equal to the fair value except for Soopy's inventory, which had a fair value of $60,000. What amount of Inventory will be reported in consolidated balance Sheet Select one: a. 186,500 b. 192,000 c. 169,000 d. 170,000
On January 1, 2014, Punch Corporation purchased 100% of the common stock of Soopy Co. Separate balance sheet data for the companies at the acquisition date (after the acquisition) are given below: Punch Soopy Cash $34,000 $206,000 A/R 144,000 26,000 Inventory 132,000 38,000 Land 68,000 32,000 Plant assets 460,000 240,000 Investment in Soopy 392,000 Accounts payable $206,000 $142,000 Capital stock 800,000 300,000 Retained earnings 224,000 100,000 Total liabilities & equities $ 1,230,000 $ 542,000 At the date of the acquisition, the book values of Soopy net assets were equal to the fair value except for Soopy's inventory, which had a fair value of $60,000. What amount of Inventory will be reported in consolidated balance Sheet Select one: a. 186,500 b. 192,000 c. 169,000 d. 170,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2014, Punch Corporation purchased 100% of the common stock of Soopy Co. Separate balance sheet data for the companies at the acquisition date (after the acquisition) are given below:
Punch Soopy
Cash $34,000 $206,000
A/R 144,000 26,000
Inventory 132,000 38,000
Land 68,000 32,000
Plant assets 460,000 240,000
Investment in Soopy 392,000
Accounts payable $206,000 $142,000
Capital stock 800,000 300,000
Retained earnings 224,000 100,000
Total liabilities & equities $ 1,230,000 $ 542,000
At the date of the acquisition, the book values of Soopy net assets were equal to the fair value except for Soopy's inventory, which had a fair value of $60,000.
What amount of Inventory will be reported in consolidated balance Sheet
Select one:
a. 186,500
b. 192,000
c. 169,000
d. 170,000
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