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REFERENCE: Ref.03_05 Perry Company Obtains 100% of the Stock of Hurley Corporation

question 50

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REFERENCE: Ref.03_05
Perry Company obtains 100% of the stock of Hurley Corporation on January 1,2009,for $3,800 cash.As of that date Hurley has the following trial balance;
SHAPE \* MERGEFORMAT
$REFERENCE: Ref.03_05 Perry Company obtains 100% of the stock of Hurley Corporation on January 1,2009,for $3,800 cash.As of that date Hurley has the following trial balance; SHAPE \* MERGEFORMAT Any excess of consideration transferred over fair value is considered goodwill with an indefinite life.FIFO inventory valuation method is used. -Compute the amount of Hurley's long-term liabilities that would be reported on a December 31,2010,consolidated balance sheet. A) $1,700. B) $1,800. C) $1,650. D) $1,750. E) $3,500.$ Any excess of consideration transferred over fair value is considered goodwill with an indefinite life.FIFO inventory valuation method is used.
-Compute the amount of Hurley's long-term liabilities that would be reported on a December 31,2010,consolidated balance sheet.

Definitions:

Negotiable Instrument

A written, signed document that promises payment of a specified sum of money to the bearer or a named party.

Pay To The Order

A directive on a negotiable instrument, such as a check, indicating that the designated amount should be paid to the entity or person specified.

Drawer

The person who writes or issues a check, draft, or bill of exchange, thereby creating an obligation to pay.

Payee

The individual or entity to whom money is payable, typically the recipient of a check or electronic payment.