On December 31,2008,Mercury Corporation acquired 100 percent ownership of Saturn Corporation.On that date,Saturn reported assets and liabilities with book values of $300,000 and $100,000,respectively,common stock outstanding of $50,000,and retained earnings of $150,000.The book values and fair values of Saturn's assets and liabilities were identical except for land which had increased in value by $10,000 and inventories which had decreased by $5,000.
-Based on the preceding information,which of the following will pertain to the differential that will appear in the eliminating entries required to prepare a consolidated balance sheet immediately after the business combination,if the acquisition price was $195,000?

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The Answer of On December 31,2008,Mercury Corporation acquired 100 percent ownership of Saturn Corporation.On that date,Saturn reported assets and liabilities with book values of $300,000 and $100,000,respectively,common stock outstanding of $50,000,and retained earnings of $150,000.The book values and fair values of Saturn's assets and liabilities were identical except for land which had increased in value by $10,000 and inventories which had decreased by $5,000.
-Based on the preceding information,which of the following will pertain to the differential that will appear in the eliminating entries required to prepare a consolidated balance sheet immediately after the business combination,if the acquisition price was $195,000?

On December 31,2008,Mercury Corporation Acquired 100 Percent Ownership of Saturn