Question

QUESTION 11 12 Following are selected accounts for Ford Corporation and Chevy Company as of December 31, 2020. Several of Ford's accounts have been omitted Ford $ 0.00 30000 Chevy $ 0.00 30 Cast of boods sold Depreconcerte Other Fourty in Chew's income 1 1 Dudens Current Land Dude 10000 10000 300 000 0.000 750.000 00 300 500.000 30 000 450.000 00 Additional Ford acquired 100% of Chew on January 1, 2016, by istuin 10.500 shares of its 510 par value common stock with a fair value of 595 per share on January 1, 2016. Chews and wandered by $40,000, its buildings were overvalued by $30,000, and equipment was undervalued by $80,000. The buildings have 20 year and the equipment has a 10-year $50,000 buted to an unrecorded trademark with a 16-year remaining life. There was no goodwill associated with this investment Compute the December 31, 2020, consolidated buildings. $1,007,500 O 51,037.500 51,012.500 51,022.500 O $1,000,000 He Proctoris sharing your screen Stop sharing

Answer 1

Answer: 1,007,500

Ford Corporation	750,000
Chevy Company	280,000
Add: Amortization expense for 5 years
(30,000 / 20 years) * 5 years	7,500
Total Value	1,037,500
Less: Overvaluation	(30,000)
Consolidated buildings	1,007,500