REFERENCE: Ref.03_05
Perry Company obtains 100% of the stock of Hurley Corporation on January 1,2009,for $3,800 cash.As of that date Hurley has the following trial balance;
SHAPE \* MERGEFORMAT
Any excess of consideration transferred over fair value is considered goodwill with an indefinite life.FIFO inventory valuation method is used.
-Compute the amount of Hurley's long-term liabilities that would be reported on a December 31,2009,consolidated balance sheet.

Question

REFERENCE: Ref.03_05
Perry Company obtains 100% of the stock of Hurley Corporation on January 1,2009,for $3,800 cash.As of that date Hurley has the following trial balance;
SHAPE \* MERGEFORMAT
  Any excess of consideration transferred over fair value is considered goodwill with an indefinite life.FIFO inventory valuation method is used.
-Compute the amount of Hurley's long-term liabilities that would be reported on a December 31,2009,consolidated balance sheet.

Quizplus · Accepted Answer

The correct amount of Hurley's long-term liabilities reported on the consolidated balance sheet would be $1,725. This figure is derived from the consolidation process, which involves combining the financial statements of Hurley and its subsidiaries, eliminating intercompany transactions, and adjusting for any necessary consolidation entries.

REFERENCE: Ref.03_05 Perry Company Obtains 100% of the Stock of Hurley Corporation