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.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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.

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