Paar Corporation bought 100 percent of Kimmel, Incorporated, on January 1, 2021. On that date, Paar's equipment (10-year remaining life) has a book value of $342,500 but a fair value of $497,500. Kimmel has equipment (10-year remaining life) with a book value of $251,000 but a fair value of $406,000. Paar uses the equity method to record its investment in Kimmel. On December 31, 2023, Paar has equipment with a book value of $239,750 but a fair value of $437,750. Kimmel has equipment with a book value of $175,700 but a fair value of $387,400. What is the consolidated balance for the Equipment account as of December 31, 2023? Multiple Choice O $523,950 $825,150 $570,450 $415,450
Paar Corporation bought 100 percent of Kimmel, Incorporated, on January 1, 2021. On that date, Paar's equipment (10-year remaining life) has a book value of $342,500 but a fair value of $497,500. Kimmel has equipment (10-year remaining life) with a book value of $251,000 but a fair value of $406,000. Paar uses the equity method to record its investment in Kimmel. On December 31, 2023, Paar has equipment with a book value of $239,750 but a fair value of $437,750. Kimmel has equipment with a book value of $175,700 but a fair value of $387,400. What is the consolidated balance for the Equipment account as of December 31, 2023? Multiple Choice O $523,950 $825,150 $570,450 $415,450
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Paar Corporation bought 100 percent of Kimmel, Incorporated, on January 1, 2021. On that date, Paar's equipment (10-year remaining life) has a book value of
$342,500 but a fair value of $497,500. Kimmel has equipment (10-year remaining life) with a book value of $251,000 but a fair value of $406,000. Paar uses
the equity method to record its investment in Kimmel. On December 31, 2023, Paar has equipment with a book value of $239,750 but a fair value of
$437,750. Kimmel has equipment with a book value of $175,700 but a fair value of $387,400. What is the consolidated balance for the Equipment account as
of December 31, 2023?
Multiple Choice
$523,950
$825,150
$570,450
$415,450
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