Reference no: EM132508657

Paccu Corporation acquired 100 percent of Sallee Company's common stock on January 1, 20X7. Balance sheet data for the two companies immediately following the acquisition follow:

                                                  Paccu                           Sallee

Cash                               $50,000                    $30,000

Accounts Receivable          60,000                       35,000

Inventory                          130,000                      45,000

Land                                      75,000                   60,000

Buildings and Equipment             310,000                      170,000

Less:

Accumulated Depreciation           (130,000)                     (30,000)

Investment in Sallee Company Stock  250,000

Total Assets                                  $745,000                       $310,000

Accounts Payable                             $40,000                     $35,000

Taxes Payable                         30,000                                   12,000

Bonds Payable                        250,000                                   50,000

Common Stock                        75,000                                    75,000

Retained Earnings                  350,000                                 138,000

Total Liabilities and Stockholders' Equity $745,000                $310,000

• At the date of the business combination, the book values of Sallee's assets and liabilities approximated fair value except for inventory, which had a fair value of $55,000, and land, which had a fair value of $65,000. The fair value of land for Paccu Corporation was estimated at $90,000 immediately prior to the acquisition.

Question 1: Based on the preceding information, what amount of total assets will appear in the consolidated balance sheet prepared immediately after the business combination?