On January 1, 20X6, Pumpkin Corporation acquired 70 percent of Spice Company’s common stock for $210,000 cash. The fair value of the noncontrolling interest at that date was determined to be $90,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Pumpkin Spice
Cash 50,000 15,000
Accounts Receivable 70,000 25,000
Inventory 30,000 20,000
Land 150,000 80,000
Buildings and Equipment 250,000 200,000
Less:
Accumulated Depreciation -70,000 -20,000
Investment in Spice Co. 210,000
Total Assets 690,000 320,000
Accounts Payable 40,000 10,000
Bonds Payable 150,000 40,000
Common Stock 300,000 90,000
Retained Earnings 200,000 180,000
Total Liabilities and Equity 690,000 320,000
At the date of the business combination, the book values of Spice's assets and liabilities approximated fair value except for inventory, which had a fair value of $30,000, and land, which had a fair value of $95,000.
1. what amount of total inventory will be reported in the consolidated balance sheet prepared immediately after the business combination?