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1. Power Corporation acquired 70 percent of Silk Corporation’s common stock on December 31, 20X2. Balance sheet data for the two companies immediately following the acquisition follow:
 

 
At the date of the business combination, the book values of Silk’s net assets and liabilities approximated fair value except for inventory, which had a fair value of $85,000, and land, which had a fair value of $45,000. The fair value of the noncontrolling interest was $64,500 on December 31, 20X2.
 
Required:
For each question below, indicate the appropriate total that should appear in the consolidated balance sheet prepared immediately after the business combination.

1. What amount of inventory will be reported?

2. Statue Corporation’s balance sheet at January 1, 20X7, reflected the following balances:
 

Prize Corporation entered into an active acquisition program and acquired 80 percent of Statue’s common stock on January 2, 20X7, for $468,000. The fair value of the noncontrolling interest at that date was determined to be $117,000. A careful review of the fair value of Statue’s assets and liabilities indicated the following:
 

  
Goodwill is assigned proportionately to Prize and the noncontrolling shareholders.
 
Required:
Compute the appropriate amount related to Statue to be included in the consolidated balance sheet immediately following the acquisition for each of the following items:

3. Proud Corporation acquired 80 percent of Spirited Company’s voting stock on January 1, 20X3, at underlying book value. The fair value of the noncontrolling interest was equal to 20 percent of the book value of Spirited at that date. Assume that the accumulated depreciation on depreciable assets was $48,000 on the acquisition date. Proud uses the equity method in accounting for its ownership of Spirited. On December 31, 20X4, the trial balances of the two companies are as follows: