Compute consolidated inventory at the date of the acquisition

A)  $1,650.

B)  $1,810.

C)  $1,230.

D)  $   580.

E)  $1,830.

Answer: B

Learning Objective: 02-05 

Learning Objective: 02-06a 

Learning Objective: 02-07

Topic: Acquisition―Allocate fair value

Topic: Acquisition―Calculate consolidated balances

Topic: Consolidation worksheet

Difficulty: 2 Medium 

Blooms: Apply

AACSB: Knowledge Application

AICPA: BB Critical Thinking

AICPA: FN Measurement

Feedback: Atwood Acquisition Date Inventory ($1,230 book value)  + Acquisition Date Fair Value of Franz Inventory ($580) = $1,230 + $580 = $1,810