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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Jay 

Please give me correct answer with explanation 

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
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
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting for Intangible assets
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education