The following information applies to the questions displayedbelow.] Pocket Corporation acquired 100 percent of StrapCorporation's common stock on December 31, 20X2. Balance sheet datafor the two companies immediately following the acquisition follow:Item Pocket Corporation Strap Corporation Cash $ 49,000 $ 30,000Accounts Receivable 110,000 45,000 Inventory 130,000 70,000 Land80,000 25,000 Buildings & Equipment 500,000 400,000 Less:Accumulated Depreciation (223,000 ) (165,000 ) Investment in StrapCorporation 198,000 Total Assets $ 844,000 $ 405,000 AccountsPayable $ 61,500 $ 28,000 Taxes Payable 95,000 37,000 Bonds Payable280,000 200,000 Common Stock 150,000 50,000 Retained Earnings257,500 90,000 Total Liabilities & Stockholders’ Equity $844,000 $ 405,000 At the date of the business combination, the bookvalues of Strap's net assets and liabilities approximated fairvalue except for inventory, which had a fair value of $85,000, andland, which had a fair value of $45,000. Required: For eachquestion, indicate the appropriate total that should appear in theconsolidated balance sheet prepared immediately after the businesscombination. 1. What amount of inventory will be reported? 2. Whatamount of goodwill will be reported? 3.What amount of total assetswill be reported? 4. What amount of total liabilities will bereported? 5. What amount of consolidated retained earnings will bereported? 6. What amount of total stockholders’ equity will bereported?
