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

question 31

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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 buildings that would be reported on a December 31,2009,consolidated balance sheet. A) $1,560. B) $1,260. C) $1,440. D) $1,160. E) $1,140.$ 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 buildings that would be reported on a December 31,2009,consolidated balance sheet.

Definitions:

Stock B

Typically a classification indicating a type of stock with specific rights or characteristics, such as differing voting rights from Stock A in the same company.

Market Risk Premium

The extra profit an investor is aiming for by choosing to invest in a market portfolio that carries risk instead of opting for assets devoid of any risk.

Government Bond

A type of investment where an investor loans money to a government in exchange for periodic interest payments plus the return of the bond's face value at maturity.