Information for Questions 19, 20, 21 On January 1, 20X6, Pen…
Information for Questions 19, 20, 21 On January 1, 20X6, Penn Corporation acquired 70 percent of Senn 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: Balance Sheet Assets Accounts and explanation Penn Senn 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 Balance Sheet Liabilities and Equity Accounts and explanation Penn Senn 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 Senn’s assets and liabilities approximated fair value except for inventory, which had a fair value of $35,000, and land, which had a fair value of $85,000. For your answers: Round your answer to the nearest dollar. Enter your answer as a number with no decimal places and no dollar ($) sign. You may enter the number with or without the comma separator (e.g., 28,374 or 28374). For partial credit: After stating your answer, show how you arrived at your answer. (e.g., 13,000 ) Include any explanations or logic used to arrive at your answer.