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
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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
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$577,050.
-
$484,050.
-
$783,950.
-
$549,150.
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