At the date of the business combination, the book values of Catapult's assets and liabilities approximated fair value except for inventory, which had a fair value of $30,000, and land, which had a fair value of $95,000. Based on the preceding information, what amount of total liabilities will be reported in the consolidated balance sheet prepared immediately after the business combination?

Respuesta :

Answer:

$125,000

Explanation:

The inventory fair value must be considered for total liabilities to be negotiated. So, fair value of $30,000 plus land value $95,000 is equal to $125,000.

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