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Consolidated Inventory Value

Some multiple choice from the text Advance Accounting-Hoyle, Shaefer, Doupnik pag-79 and 80. Choose the best answer, please.
11 and 12- are based in the following information Hampstead Inc. haa only three assets: Book Value Fair Value
Inventory........................... $110,000 $150,000
Land................................ 700,000 600,000
Building............................. 700,000 900,000
Miller Corporation purchases Hamptead by issuing 100,000 shares of its $10 par value common stock.
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11-If Miller stock is worth $20 per share at what value will the inventory, land and buildings be consolidated, respectively?
a) $110,000, $600,000, 900,000
b) $110,000, $700,000, 700,000
c) $150,000, $600,000, 900,000
d) $150,000, $700,000, 900,000

12- If Miller stock is worth $15 per share, at what value will the inventory, land and buildings be consolidated, respectively?
a) $100,000, $695,000, 695,000
b) $150,000, $600,000, 900,000
c) $150,000, $540,000, 810,000
d) $136,363, $545,455, 818,182

Solution Summary

Attached Word document gives the solutions to questions on consolidation value of Miller inventory given their stock per share price.

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