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Watkins, Inc. acquires all of the outstanding stock of Glen Corporation on January 1, 2020. At that date, Glen owns only three assets and has no liabilities: Land Equipment (10-year 80,000 75,000 life) Building (20-year life). 200,000 300,000 If Watkins pays $450,000 in cash for Glen, what acquisition-date fair value allocation, net of amortization, should be attributed to the subsidiary's Equipment in consolidation at December 31, 2022? Multiple Choice O Book Fair Value Value $ 40,000 $50,000 $(5,000). $75,000

Watkins, Inc. acquires all of the outstanding stock of Glen Corporation on January 1, 2020. At that date, Glen owns only three assets and has no liabilities: Land Equipment (10-year 80,000 75,000 life) Building (20-year life). 200,000 300,000 If Watkins pays $450,000 in cash for Glen, what acquisition-date fair value allocation, net of amortization, should be attributed to the subsidiary's Equipment in consolidation at December 31, 2022? Multiple Choice O Book Fair Value Value $ 40,000 $50,000 $(5,000). $75,000

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

Watkins, Inc. acquires all of the outstanding stock of Glen Corporation on January 1, 2020. At that date, Glen owns only three assets and has no liabilities: Land Equipment (10-year 80,000 75,000 life) Building (20-year life). 200,000 300,000 If Watkins pays $450,000 in cash for Glen, what acquisition-date fair value allocation, net of amortization, should be attributed to the subsidiary's Equipment in consolidation at December 31, 2022? Multiple Choice Book Fair Value Value $ 40,000 $50,000 $(5,000). O $75,000
Transcribed Image Text:Watkins, Inc. acquires all of the outstanding stock of Glen Corporation on January 1, 2020. At that date, Glen owns only three assets and has no liabilities: Land Equipment (10-year 80,000 75,000 life) Building (20-year life). 200,000 300,000 If Watkins pays $450,000 in cash for Glen, what acquisition-date fair value allocation, net of amortization, should be attributed to the subsidiary's Equipment in consolidation at December 31, 2022? Multiple Choice Book Fair Value Value $ 40,000 $50,000 $(5,000). O $75,000
O O $75,000. $73,500. $(3,500). $80,000.
Transcribed Image Text:O O $75,000. $73,500. $(3,500). $80,000.
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