Question:
Cash and Receivables at cost $50,000 (Fair Value $50,000; Inventory at cost $120,000 (Fair value $125,000); Buildings and equipment net at cost $200,000 (Fair Value $240,000); Liabilities at cost $100,000 (Fair Value $100,000). Based on the preceding information, the differential reflected in a consolidation worksheet to prepare a consolidated balance sheet immediately after the business combination is:
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$0.
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$25,000.
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$70,000.
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$45,000.
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