Watkins, Inc. acquires all of the outstanding stock of Glen Corporation on January 1, 2017. At that date, Glen owns only three assets and has no liabilities: BookValueFairValueLand$40,000 $50,000 Equipment (10-year life) 80,000 75,000 Building (20-year life) 200,000 300,000 ?If Watkins pays $450,000 in cash for Glen, what amount would be represented as the subsidiary's Equipment in a consolidation at December 31, 2019, assuming the book value of the equipment at that date is still $80,000?
A. $76,500.
B. $80,000.
C. $70,000.
D. $75,000.
E. $73,500.
Answer: A
You might also like to view...
Common measures of production activity used to allocate factory overhead are
a. indirect material costs; b. utilities costs; c. repair costs; d. direct labor costs; e. depreciation.
Which of the following occurs when a person has already invested in a course of action, and does not recognize what they invested initially is gone?
A. sunk costs fallacy B. satisficing C. hindsight bias D. overconfidence bias
Discuss the implications behind the statement that "the customer is always right" in light of the fact that a company must at times deny a customer's request
Which sentence is expressed correctly?
A) Representatives from the FTC, IRS, and FCC developed strategies to reduce costs within their organizations. B) The C.E.O., C.F.O, and several division managers of I.B.M. will meet at 3 p.m., E.S.T. C) Although based in the U.S., the company ships products to both Canada and the U.K.