Reference no: EM132904698
Question - On December 31, 2009, the Add-On Company acquired 100 percent of the common stock of Venus Corporation for $ 300,000. Information on the balance of Venus just before the acquisition is given here:
Cash and Accounts Receivable $35,000
Inventory 75,000
Land 100,000,
Buildings and Equipment (net) 220,000
Total Assets $430,000
Accounts Payable $65,000
Bonuses for Paying 150,000
Common Shares 100,000
Retained Earnings 115,000
Total Liabilities and Equity $430,000
At the date of the business combination, Venus' net assets and liabilities were close to fair value, except for inventory, which had a fair value of $ 60,000, land that had a fair value of $ 125,000, and buildings and equipment (net) of $250,000.
Required -
(1) How much inventory will be included on the consolidated balance sheet immediately after acquisition?
(2) How much goodwill will be included on the consolidated balance sheet immediately after the acquisition?
(3) What amount will be included as an investment in Venus Corporation on the consolidated balance sheet immediately after the acquisition?