Ponti Company Purchased the Net Assets of the Sorri Company

question 44

Multiple Choice

Ponti Company purchased the net assets of the Sorri Company for $800,000. The book value of the net assets of Sorri Company were as follows on the acquisition date: The market values were as follows: Inventory, $160,000; Land, $170,000; Building, $450,000. The excess purchase price is allocated to goodwill. On the consolidated statement of cash flows, what is the amount that will appear as cash applied to investing as a result of this purchase?

• A)$800,000
• B)$720,000
• C)$750,000
• D)$670,000

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