Compute the amount of consolidated inventories at date of acquisition

A)  $1,080.

B)  $1,350.

C)  $1,360.

D)  $1,370.

E)  $   290.

Answer: D

Learning Objective: 02-05 

Learning Objective: 02-06a

Learning Objective: 02-07

Topic: Acquisition―Allocate fair value

Topic: Acquisition―Calculate consolidated balances

Difficulty: 2 Medium

Blooms: Apply

AACSB: Knowledge Application

AICPA: BB Critical Thinking

AICPA: FN Measurement

Feedback: Moody Inventory ($1,080 Book Value on Acquisition Date) + Osario Inventory ($290 – Fair Value on Acquisition Date) = $1,370