On December 31, 20X9, Add-On Company acquired 100 percent of Venus Corporation's common stock for $300,000....
On December 31, 20X9, Add-On Company acquired 100 percent of Venus Corporation's common stock for $300,000. Balance sheet information for 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. 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) $300,000
C) $340 ,000
D) $385,000
Homework Answers
Investment in venus corporation account is eliminated in consolidated balance sheet.
Correct option is A) $0
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