On January 1, 2014, Punch Corporation purchased 80% of the common stock of Soopy Co. Separate balance sheet data for the companies at the acquisition date (after the acquisition) are given below: Punch Soopy
Cash $34,000 $206,000
Accounts Receivable 144,000 26,000
Inventory 132,000 38,000
Land 68,000 32,000
Plant assets 700,000 300,000
Accum. Depreciation (240,000) (60,000)
Investment in Soopy 392,000
Total assets $1,230,000 $542,000
Accounts payable $206,000 $142,000
Capital stock 800,000 300,000
Retained earnings 224,000 100,000
Total liabilities & equities $1,230,000 $542,000At the date of the acquisition, the book values of Soopy's net assets were equal to the fair value except for Soopy's inventory, which had a fair value of $60,000. Determine below what the consolidated balance would be for each of the requested accounts. A) What amount of total liabilities will be reported?B) What is the amount of total assets?C) What amount of Inventory will be reported?