On July 1,20X9,Playa Corporation paid $340,000 for all of Seashore Company's outstanding common stock.On that date,the costs and fair values of Seashore's recorded assets and liabilities were as follows:

-Based on the preceding information,the differential reflected in a consolidation worksheet to prepare a consolidated balance sheet immediately after the business combination is:
A)$0.
B)$25,000.
C)$70,000.
D)$45,000.

Question

On July 1,20X9,Playa Corporation paid $340,000 for all of Seashore Company's outstanding common stock.On that date,the costs and fair values of Seashore's recorded assets and liabilities were as follows:
 
-Based on the preceding information,the differential reflected in a consolidation worksheet to prepare a consolidated balance sheet immediately after the business combination is:
A)$0. 
B)$25,000. 
C)$70,000. 
D)$45,000.

Quizplus · Accepted Answer

The Answer is C

On July 1,20X9,Playa Corporation Paid $340,000 for All of Seashore