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Question 1: (90 points) Post Records Inc. acquired all of Script Studios' voting shares on January 1, 2019, for $320,000. Post's balance sheet immediately after the combination contained the following balances: POST RECORDS INC. Balance Sheet January 1, 2019 $20,000 Accounts Payable 60,000 Notes Payable 110,000 Bonds Payable 70,000 350,000 Common Stock 320,000 Retained Earnings $930,000 Total Liabilities & Equity Cash Receivables Inventory Land Buildings & Equipment(net) Investment in Script Studios Total Assets $75,000 50,000 300,000 400,000 105,000 $930,000 Script Studios' balance sheet at acquisition contained the following balances: Cash Receivables Inventory Land Buildings & Equipment (net) Total Assets SCRIPT STUDIOS Balance Sheet January 1,2019 $10,000 30,000 100,000 80,000 380,000 $600,000 Accounts Payable Notes Payable Bonds Payable Common Stock Retained Earnings Total Liabilities & Equity $ 90,000 200,000 50,000 100,000 160,000 $600,000 On the date of combination, the inventory held by Script had a fair value of $90,000, its land had a fair value of $100,000, and its buildings and equipment had a fair value of $385,000. Required Compute the balances to be reported in the consolidated balance sheet immediately after the acquisition for: a. Inventory. (10 points) b. Buildings and Equipment (net). (10 points) C. Investment in Script Stock. (10 points) d. Differential value. (10 points) e. Goodwill. (10 points) f. Common Stock. (10 points) g. Retained Earnings. (10 points) h. Cash. (10 points) i. Land. (10 points)

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