On July 1, 20X9, Link Corporation paid $340,000 for all of Tinsel Company's outstanding common
stock. On that date, the costs and fair values of Tinsel's recorded assets and liabilities were as follows:
Based on the preceding information, the differential reflected in a consolidation worksheet to prepare a
consolidated balance sheet immediately after the business combination is:
Based on the preceding information, what amount should be allocated to goodwill in the consolidated
balance sheet, prepared after this business combination?
On December 31, 20X9, Add-On Company acquired 100 percent of Venus Corporation's common
stock for $300,000. Balance sheet information Venus just prior to the acquisition is given here:
At the date of the business combination, Venus'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?