Answer:
1. Amount of inventory:
D. $45,000
2. Amount of Goodwill:
A. $0
3. Total assets:
A. $720,000
4. Total liabilities:
C. $275,000
5. Non-controlling interest:
C. $40,000
6. Consolidated Retained Earnings
A. $205,000
7. Stockholders' Equity:
$405,000
Explanation:
a) Data:
1. Balance Sheets
Gulliver Corp. Sea-Gull Corp.
Book value Fair value
Cash $ 60,000 $ 20,000 $20,000
Accounts Receivable 80,000 30,000 30,000
Inventory 90,000 40,000 45,000
Land 100,000 40,000 60,000
Buildings and Equipment 200,000 150,000 150,000
Less: Acc. Depreciation (80,000) (50,000) (50,000)
Investment in Sea-Gull Corp.160,000
Total Assets $ 610,000 $ 230,000 $255,000
Accounts Payable $ 110,000 $ 30,000 $30,000
Bonds Payable 95,000 40,000 40,000
Unrealized gain on fair value 25,000
Common Stock 200,000 40,000 0
Retained Earnings 205,000 120,000 0
Total Liabilities & Equity $ 610,000 $ 230,000
