Treadwav Corporation acquires Hooker, Inc. The parent pays more for it than the fair value of the subsidiary’s net assets. On the acquisition date, Treadway has equipment with a book valueof $420,000 and a fair value of $530,000. Hooker has equipment with a book value of $330,000 and a fair value of $390,000. Hooker is going to use push-down accounting.Immediately after the acquisition, what amounts in the Equipment account appear on Hooker’s separate balancesheet and on the consolidated balance sheet?
a. $330,000 and $750,000.
b. $330,000 and $860,000.
c. $390,000 and $810,000.
d. $390,000 and $920,000.
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