The condensed separate and consolidatedbalance sheets of Alpha Corporation and itssubsidiary, Bita Company, on the date of theirbusiness combination, includes plant assets ofAlpha $500,000, plant assets of Bita $235,000and plant assets consolidated $750,000.Indicates that:а.Excess of the carrying amount of plant assetsof Bita over fair value by $15,000.b.Excess of the carrying amount of plant assetsof Alpha over fair value by $15,000.С.Excess of fair value of plant assets of Bita overthe carrying amount by $15,000.d.Excess of fair value of plant assets of Alphaover the carrying amount by $15,000.

Fair Value is defined as the price that would be received to sell an asset or paid to transfer a…

Answered: es plant asse of Bita $235 $750,000.

Business

Accounting

es plant asse of Bita $235 $750,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

The condensed separate and consolidated
balance sheets of Alpha Corporation and its
subsidiary, Bita Company, on the date of their
business combination, includes plant assets of
Alpha $500,000, plant assets of Bita $235,000
and plant assets consolidated $750,000.
Indicates that:
а.
Excess of the carrying amount of plant assets
of Bita over fair value by $15,000.
b.
Excess of the carrying amount of plant assets
of Alpha over fair value by $15,000.
С.
Excess of fair value of plant assets of Bita over
the carrying amount by $15,000.
d.
Excess of fair value of plant assets of Alpha
over the carrying amount by $15,000.

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