The following information applies to the questions displayed

The following information applies to the questions displayed below On July 1, TruData Company issues 10,000 shares of its common stock with a $5 par value and a $50 fair value in exchange for all of Webstat Company\'s outstanding voting shares. Webstat\'s precombination book and fair values are shown below along with book values for TruData\'s accounts 10 points TruData Book Values Webstat Book Values Webstat Fair Values Revenues (1/1 to Expenses (1/1 to Retained earnings, (279, 000) (160,000) eBook 144,000 96,000 \'(134,000 152,000) Cash and receivables Inventory Patented technology (net) Land Buildings and equipment (net) Liabilities Common stock Additional paid-in capital 190,000 76,000 76,000 150,000 184,000 202,000 88,000 (514,000) (372,000) (348,000) 168,000 246,000 416,000 80,000 170,000 212,000 236,000 88,000 (308,000) (76, 000) (9,000) (36,000) On its acquisition-date consolidated balance sheet, what amount should TruData report as patented technology (net)? Multiple Choice $212,000 $458,000 $246,000 $428,000

Solution

Answer is $458,000.

Patented Technolgy -- TruData - $246,000

--Webstat (fair value) - $212,000

Total - $548,000