8. On December 31, 20x8, Pintz Corporation reported total assets of $900,000 and

Question

8. On December 31, 20x8, Pintz Corporation reported total assets of $900,000 and Still Company reported total assets of $470,000, common stock of $250,000 and retained earnings of $150,000. On January 1, 20X9, Pintz acquired 100% of the common stock of Still Company for $540,000 cash. On the date of acquisition the fair value and the book value of Still Company's net assets were approximately equal with the exception of land which had a fair value of $40,000 over reported book value. On the consolidated balance sheet immediately after acquisition, what amount was reported for total assets? A) $970,000 B) $1,370,000 C) $1,410,000 D) $1,510,000 Page 3

Explanation / Answer

(C) $14,70,000

Fair value is considered. Since, the acquisition is not in the case of merger.

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