Question: On December 31, 20X9, Add-On Company acquired 100 percent of Venus Corporation's common stock for $300,000. Balance sheet information Venus just prior to the acquisition is given here:
| Cash and Receivables |
$35,000 |
| Inventory |
75,000 |
| Land |
100,000 |
| Buildings and Equipment (net) |
220,000 |
| Total Assets |
$430,000 |
| Accounts Payable |
$65,000 |
| Bonds Payable |
150,000 |
| Common Stock |
100,000 |
| Retained Earnings |
115,000 |
| Total Liabilities and Stockholders' Equity |
$430,000 |
At the date of the business combination, Venus's net assets and liabilities approximated fair value except for inventory, which had a fair value of $60,000, land which had a fair value of $125,000, and buildings and equipment (net), which had a fair value of $250,000.
1. Based on the information provided, what amount of inventory will be included in the consolidated balance sheet immediately following the acquisition?
A. $60,000
B. $75,000
C. $15,000
D. $45,000
2. Based on the information provided, what amount of goodwill will be included in the consolidated balance sheet(CBS) immediately following the acquisition?
A. $30,000
B. $15,000
C. $85,000
D. $45,000
3. Based on the information provided, what amount will be included as investment in Venus Corporation in the consolidated balance sheet immediately following the acquisition?
A. $0
B. $395,000
C. $255,000
D. $300,000