Pace Corporation acquired 100 percent of Spin Company's common stock on January 1,20X9.Balance sheet data for the two companies immediately following the acquisition follows:
At the date of the business combination,the book values of Spin's net assets and liabilities approximated fair value except for inventory,which had a fair value of $60,000,and land,which had a fair value of $50,000.The fair value of land for Pace Corporation was estimated at $80,000 immediately prior to the acquisition.
-Based on the preceding information,at what amount should total land be reported in the consolidated balance sheet prepared immediately after the business combination?
A)$130,000
B)$105,000
C)$115,000
D)$120,000

Question

Pace Corporation acquired 100 percent of Spin Company's common stock on January 1,20X9.Balance sheet data for the two companies immediately following the acquisition follows:
  At the date of the business combination,the book values of Spin's net assets and liabilities approximated fair value except for inventory,which had a fair value of $60,000,and land,which had a fair value of $50,000.The fair value of land for Pace Corporation was estimated at $80,000 immediately prior to the acquisition.
-Based on the preceding information,at what amount should total land be reported in the consolidated balance sheet prepared immediately after the business combination?
A)$130,000 
B)$105,000 
C)$115,000 
D)$120,000

Quizplus · Accepted Answer

The Answer of Pace Corporation acquired 100 percent of Spin Company's common stock on January 1,20X9.Balance sheet data for the two companies immediately following the acquisition follows:
  At the date of the business combination,the book values of Spin's net assets and liabilities approximated fair value except for inventory,which had a fair value of $60,000,and land,which had a fair value of $50,000.The fair value of land for Pace Corporation was estimated at $80,000 immediately prior to the acquisition.
-Based on the preceding information,at what amount should total land be reported in the consolidated balance sheet prepared immediately after the business combination?
A)$130,000 
B)$105,000 
C)$115,000 
D)$120,000

Pace Corporation Acquired 100 Percent of Spin Company's Common Stock