On December 31, 20X5, Pluto Company acquired 100 percent of Saturn Corporation's common stock for $300,000. Balance sheet information for Saturn just prior to the acquisition is given here: Cash and Receivables Inventory Land Buildings and Equipment (net) Total Assets Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities and Stockholders' Equity $ 35,000 75,000 100,000 220,000 S 430,000 $65,000 150,000 100,000 115,000 $ 430,000 At the date of the business combination, Saturn's net assets and liabilities approximated fair value except for inventory, which had a fair value of $60,000, land which had a fair value of $125,000, and buildings and equipment (net), which had a fair value of $250,000.

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09-12-2022
Business

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On December 31, 20X5, Pluto Company acquired 100 percent of Saturn Corporation's common stock for $300,000. Balance sheet information for Saturn just prior to the acquisition is given here: Cash and Receivables Inventory Land Buildings and Equipment (net) Total Assets Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities and Stockholders' Equity $ 35,000 75,000 100,000 220,000 S 430,000 $65,000 150,000 100,000 115,000 $ 430,000 At the date of the business combination, Saturn's net assets and liabilities approximated fair value except for inventory, which had a fair value of $60,000, land which had a fair value of $125,000, and buildings and equipment (net), which had a fair value of $250,000.

Answer :

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Yogeshkumari Yogeshkumari · Answer 1 · 2022-12-16T00:03:41-05:00

Based on the information provided, the amount of inventory which will be included in the consolidated balance sheet immediately following the acquisition is $60,000.

A balance sheet is a summary of the financial position of a person or organization in financial accounting, whether it is a sole proprietorship, business partnership, corporation, limited liability company, etc. partnership or another type of organization such as a government or nonprofit organization.

From a specific date, such as the end of a financial year, assets, liabilities and equity are mentioned. The balance sheet is often thought of as a "picture of a company's financial health". The balance sheet is one of the four basic financial statements that apply only to a certain period of time in a company's financial year.

Hence the correct option is A

The above question is incomplete, the complete question is-

On December 31, 20X9, Pluto Company acquired 100 percent of Saturn Corporation's common stock for $300,000. Balance sheet information for Saturn just prior to the acquisition is given here:

Cash & Receivables $35,000

Inventory 75,000

Land 100,000

Buildings & Equip (net) 220,000

Total Assets $430,000

Accounts Payable $65,000

Bonds Payable 150,000

Common Stock 100,000

Retained Earnings 115,000

Total Liabilities & SE $430,000

At the date of the business combination, Saturn's net assets and liabilities approximated fair value except for inventory, which had a fair value of $60,000, land which had a fair value of $125,000, and buildings and equipment (net), which had a fair value of $250,000.

Based on the information provided, what amount of inventory will be included in the consolidated balance sheet immediately following the acquisition?

A) $60,000

B) $75,000

C) $15,000

D) $45,000

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