On January 1, 2020, Elva Corp. paid $750,000 for 80% of Fenton Co. when the book value of Fenton's net assets was $800,000. Fenton owned a building with a fair value of $150,000 and a book value of $120,000.Required: At what amount would the building appear on a consolidated balance sheet prepared immediately after the combination, under the acquisition method of accounting for business combinations?
What will be an ideal response?
| Book value of building | $ | 120,000 | |
| Allocation of difference | 30,000 | ||
| Fenton's building for consolidation | $ | 150,000 | |
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