On the date of purchase, Skywalker's inventory and buildings and equipment had fair values of $255,000 and $870,000, respectively. Based on the information given above, the amount to be reported for inventory in the consolidated balance sheet immediately after the

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Business

Ernie

29 November, 12:01

On the date of purchase, Skywalker's inventory and buildings and equipment had fair values of $255,000 and $870,000, respectively. Based on the information given above, the amount to be reported for inventory in the consolidated balance sheet immediately after the

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Rylee Mckee · Answer 1

Inventory to be shown in balance sheet = $955000

Explanation:

According to the given dа ta:

Fair value of Skywalker's inventory = $255000

Fair value of Skywalker's buildings and equipment is = $870000

Calculation of amount to be reported for inventory in consolidated balance sheet is as follows:

Inventory = ($700000 + $255000)

= $955000

Note: Inventory of parent company and subsidiary company is to be added in preparing consolidated balance sheet