On December 31,20X8,Pancake Company acquired controlling ownership of Syrup Company.A consolidated balance sheet was prepared immediately.Partial balance sheet data for the two companies and the consolidated entity at that date follow:
During 20X8,Pancake Company provided consulting services to Syrup Company and has not yet paid for them.There were no other receivables or payables between the companies at December 31,20X8.
-Based on the information given,what was the fair value of Syrup Company as a whole at the date of acquisition?
A)$155,000
B)$110,000
C)$115,000
D)$135,000

Question

On December 31,20X8,Pancake Company acquired controlling ownership of Syrup Company.A consolidated balance sheet was prepared immediately.Partial balance sheet data for the two companies and the consolidated entity at that date follow:
  During 20X8,Pancake Company provided consulting services to Syrup Company and has not yet paid for them.There were no other receivables or payables between the companies at December 31,20X8.
-Based on the information given,what was the fair value of Syrup Company as a whole at the date of acquisition?
A)$155,000 
B)$110,000 
C)$115,000 
D)$135,000

Quizplus · Accepted Answer

The fair value of Syrup Company at the date of acquisition was $155,000, as indicated by the choice.

On December 31,20X8,Pancake Company Acquired Controlling Ownership of Syrup Company