Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 27

Purchase Method
Use the same information as presented in problem 27 but assume that Arlington pays $2,020,000 in cash.An additional $20,000 is paid in direct combination costs.For each of the following accounts, determine what balance will be included in a February 1 consolidation.
a.Inventory.
b.Goodwill.
c.Expenses.
d.Buildings.
e.Land.