On January 1,20X9,Pirate Corporation Acquired 80 Percent of Sea-Gull Company's

question 6

Multiple Choice

On January 1,20X9,Pirate Corporation acquired 80 percent of Sea-Gull Company's common stock for $160,000 cash.The fair value of the noncontrolling interest at that date was determined to be $40,000.Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:
At the date of the business combination,the book values of Sea-Gull's net assets and liabilities approximated fair value except for inventory,which had a fair value of $45,000,and land,which had a fair value of $60,000.
-Based on the preceding information,what amount of total inventory will be reported in the consolidated balance sheet prepared immediately after the business combination?

• A)$130,000
• B)$135,000
• C)$90,000
• D)$45,000

Analyze the impact of fiscal policy on economic stability.

Explain the concept of laissez-faire and its implications on economic policy.

Recognize the significance of the Employment Act of 1946.

Understand the effects of economic contractions and expansions on government policy and vice versa.

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