Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2018. On that date, Paar’s equipment (10-year remaining life) has a book value of $412,500 but a fair value of $512,500. Kimmel has equipment (10-year remaining life) with a book value of $279,000 but a fair value of $372,000. Paar uses the equity method to record its investment in Kimmel. On December 31, 2020, Paar has equipment with a book value of $288,750 but a fair value of $429,950. Kimmel has equipment with a book value of $195,300 but a fair value of $354,000. What is the consolidated balance for the Equipment account as of December 31, 2020? Multiple Choice $577,050. $484,050. $783,950. $549,150.
Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2018. On that date, Paar’s equipment (10-year remaining life) has a book value of $412,500 but a fair value of $512,500. Kimmel has equipment (10-year remaining life) with a book value of $279,000 but a fair value of $372,000. Paar uses the equity method to record its investment in Kimmel. On December 31, 2020, Paar has equipment with a book value of $288,750 but a fair value of $429,950. Kimmel has equipment with a book value of $195,300 but a fair value of $354,000. What is the consolidated balance for the Equipment account as of December 31, 2020? Multiple Choice $577,050. $484,050. $783,950. $549,150.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2018. On that date, Paar’s equipment (10-year remaining life) has a book value of $412,500 but a fair value of $512,500. Kimmel has equipment (10-year remaining life) with a book value of $279,000 but a fair value of $372,000. Paar uses the equity method to record its investment in Kimmel. On December 31, 2020, Paar has equipment with a book value of $288,750 but a fair value of $429,950. Kimmel has equipment with a book value of $195,300 but a fair value of $354,000. What is the consolidated balance for the Equipment account as of December 31, 2020?
Multiple Choice
-
$577,050.
-
$484,050.
-
$783,950.
-
$549,150.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education