Question
Hamlen Corporation acquired 100 percent of Pink's Company's common stock on January 1, 2015. Balance sheet...
Hamlen Corporation acquired 100 percent of Pink's Company's common stock on January 1, 2015. Balance sheet data for the two companies immediately following the acquisition follow:
.....................................................Hamlen.................. Pink's
Cash.............................................$ 30,000 ..............$25,000
Accounts Receivable........................... 80,000 ................40,000
Inventory........................................ 150,000............... 55,000
Land.............................................. 65,000 ................40,000
Buildings and Equipment...................... 260,000............. 160,000
Less: Accumulated Depreciation............ (120,000)............. (50,000)
Investment in Pong Company Stock.......... 150,000
Total Assets...................................... $615,000 ........$270,000
Accounts Payable...............................$ 45,000.......... $ 33,000
Taxes Payable.................................... 20,000............... 8,000
Bonds Payable ................................... 200,000........... 100,000
Common Stock..................................... 50,000 ............20,000
Retained Earnings................................ 300,000........... 109,000
Total Liabilities and Stockholder's Equity.....$615,000 .........$270,000
At the date of the combination, the book values of Pink's net
assets and liabilities approximated fair value except for
inventory, which had a fair value of $60,000, and land, which had a
fair value of $50,000. The fair value of land for Hamlen
Corporation was estimated at $80,000 immediately prior to the
acquisition.
Based on the preceding information, what will be reported in the
consolidated balance sheet at December 31, 2015 for total
liabilities?
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