Perry Company Acquires 100% of the Stock of Hurley Corporation

Multiple Choice

Perry Company acquires 100% of the stock of Hurley Corporation on January 1, 2012, for $3,800 cash. As of that date Hurley has the following trial balance; Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life. FIFO inventory valuation method is used.
Compute the amount of Hurley's inventory that would be reported in a January 1, 2012, consolidated balance sheet.

A) $800.
B) $100.
C) $900.
D) $150.
E) $0.