On January 1,20X6,Pumpkin Corporation Acquired 70 Percent of Spice Company's

question 42

Multiple Choice

On January 1,20X6,Pumpkin Corporation acquired 70 percent of Spice Company's common stock for $210,000 cash.The fair value of the noncontrolling interest at that date was determined to be $90,000.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 Spice's assets and liabilities approximated fair value except for inventory,which had a fair value of $30,000,and land,which had a fair value of $95,000.
-Based on the preceding information,what amount of total assets will be reported in the consolidated balance sheet prepared immediately after the business combination?

• A)$800,000
• B)$830,000
• C)$1,010,000
• D)$1,040,000