Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2015. On that date, Paar’s equipment (10-year life) has a book value of $425,000 but a fair value of $607,000. Kimmel has equipment (10-year life) with a book value of $209,000 but a fair value of $376,000. Paar uses the equity method to record its investment in Kimmel. On December 31, 2017, Paar has equipment with a book value of $297,500 but a fair value of $512,700. Kimmel has equipment with a book value of $146,300 but a fair value of $367,500. What is the consolidated balance for the Equipment account as of December 31, 2017?
Book value of equipment (P company) | 297,500 |
Book value of equipment (K company) | 146,300 |
+ goodwill recognized by P company on Jan 31,2015 (376,000-209,000) |
167,000 |
- goodwill amortized (167,000/10) * 3 | (50100) |
Consolidated balance of equipment | 560,700 |
Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2015. On that date, Paar’s...
Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2015. On that date, Paar’s equipment (10-year life) has a book value of $362,500 but a fair value of $499,000. Kimmel has equipment (10-year life) with a book value of $284,000 but a fair value of $419,000. Paar uses the equity method to record its investment in Kimmel. On December 31, 2017, Paar has equipment with a book value of $253,750 but a fair value of $411,250. Kimmel has...
Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2015. On that date, Paar’s equipment (10-year life) has a book value of $445,000 but a fair value of $631,000. Kimmel has equipment (10-year life) with a book value of $282,000 but a fair value of $468,000. Paar uses the equity method to record its investment in Kimmel. On December 31, 2017, Paar has equipment with a book value of $311,500 but a fair value of $531,200. Kimmel has...
Inc.. on January 1, 2015 of 52125 oration bowemaining firemaining lif cht 100 peres has a book value of $420,000 bu915 aining life) with a book value 10 Chapter 3 investment in Kimmel 204,000 but a fair value of $44 LO 3-1 00.400 but a fair value of 5357.000 S400.000. Pament with a 190.400 bular 31, 2017? Par has a look atuount as or 5. Paar Corporation bought 100 percent of Kimmel, Inc equipment (10-year remaining life) has a book...
Lowell Co. acquired 100% of Boston, Inc. on January 1, 2017. On that date, Boston had land with a book value of $42,000 and a fair value of $52,000. Also, on the date of acquisition, Boston had a building with a book value of $200,000 and a fair value of $390,000. Boston had equipment with a book value of $350,000 and a fair value of $280,000. Both companies use the same depreciation policy, that the building had a 10-year remaining...
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Lowell Co. acquired 100% of Boston, Inc. on January 1, 2017. On that date, Boston had land with a book value of $42,000 and a fair value of $52,000. Also, on the date of acquisition, Boston had a building with a book value of $200,000 and a fair value of $390,000. Boston had equipment with a book value of $350,000 and a fair value of $280,000. Both companies use the same depreciation policy, that the building had a 10-year remaining...
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