Assume that there were no allocations established at the


Question - Early Company owns 100 percent of the outstanding shares of Late. During the current year, Early sold inventory costing $90,000 to Late for $100,000. Although this inventory has now been sold to an outside party, Late has not repaid Early. At the balance sheet date, Early has total current assets of $800,000 whereas Late has total current assets of $500,000. Assume that there were no allocations established at the date of acquisition. What is the total amount reported on the consolidated balance sheet for current assets?

A) $1,190,000

B) $1,200,000

C) $1,210,000

D) $1,300,000

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Accounting Basics: Assume that there were no allocations established at the
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