Figure:
Perry Company acquires 100% of the stock of Hurley Corporation on January 1, 2010, for $3,800 cash. As of that date Hurley has the following trial balance; Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life. FIFO inventory valuation method is used.
-Compute the amount of total expenses reported in an income statement for the year ended December 31, 2010, in order to recognize acquisition-date allocations of fair value and book value differences,
A) $140.
B) $190.
C) $260.
D) $285.
E) $310.

Question

Figure:
Perry Company acquires 100% of the stock of Hurley Corporation on January 1, 2010, for $3,800 cash. As of that date Hurley has the following trial balance;  Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life. FIFO inventory valuation method is used.
-Compute the amount of total expenses reported in an income statement for the year ended December 31, 2010, in order to recognize acquisition-date allocations of fair value and book value differences,
A) $140. 
B) $190. 
C) $260. 
D) $285. 
E) $310.

Quizplus · Accepted Answer

The Answer of Figure:
Perry Company acquires 100% of the stock of Hurley Corporation on January 1, 2010, for $3,800 cash. As of that date Hurley has the following trial balance;  Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life. FIFO inventory valuation method is used.
-Compute the amount of total expenses reported in an income statement for the year ended December 31, 2010, in order to recognize acquisition-date allocations of fair value and book value differences,
A) $140. 
B) $190. 
C) $260. 
D) $285. 
E) $310.

Figure: Perry Company Acquires 100% of the Stock of Hurley Corporation