Statue Corporations balance sheet at January 1, 20X7, reflected the following balances: Assets...
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Accounting
Statue Corporations balance sheet at January 1, 20X7, reflected the following balances:
Assets
Liabilities & Stockholders Equity
Cash & Receivables
$ 90,000
Accounts Payable
$ 20,000
Inventory
130,000
Income Taxes Payable
41,000
Land
72,000
Bonds Payable
314,000
Buildings & Equipment (net)
497,000
Common Stock
232,000
Retained Earnings
182,000
Total Assets
$ 789,000
Total Liabilities & Stockholders Equity
$ 789,000
Prize Corporation entered into an active acquisition program and acquired 80 percent of Statue's common stock on January 2, 20X7, for $434,000. The fair value of the noncontrolling interest at that date was determined to be $108,500. A careful review of the fair value of Statue's assets and liabilities indicated the following:
Book Value
Fair Value
Inventory
$ 130,000
$ 150,000
Land
72,000
62,000
Buildings & Equipment (net)
497,000
569,000
Goodwill is assigned proportionately to Prize and the noncontrolling shareholders.
Required:
Compute the appropriate amount related to Statue to be included in the consolidated balance sheet immediately following the acquisition for each of the following items:
Answer & Explanation
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