Homework Help is Here – Start Your Trial Now!
Business
Accounting
Watkins, Inc. acquires all of the outstanding stock of Glen Corporation on January 1, 20x6. At that date, Glen owns only three assets and has no liabilities: Book Value Fair Value Inventory 40,000 50,000 Equipment (10 year life) 80,000 75,000 Building (20 year life) 200,000 300,000 If Watkins pays 450,000 in cash for Glen, what amount would be represented as the subsidiary's Building in a consolidation at December 31, 20x8, assuming the book value at that date is still

Watkins, Inc. acquires all of the outstanding stock of Glen Corporation on January 1, 20x6. At that date, Glen owns only three assets and has no liabilities: Book Value Fair Value Inventory 40,000 50,000 Equipment (10 year life) 80,000 75,000 Building (20 year life) 200,000 300,000 If Watkins pays 450,000 in cash for Glen, what amount would be represented as the subsidiary's Building in a consolidation at December 31, 20x8, assuming the book value at that date is still

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

12. plese help me to answer this with solution. thank you

Watkins, Inc. acquires all of the outstanding stock of Glen Corporation on January 1, 20x6. At that date, Glen owns only three assets and has no liabilities: Book Value Fair Value Inventory 40,000 50,000 Equipment (10 year life) 80,000 75,000 Building (20 year life) 200,000 300,000 If Watkins pays 450,000 in cash for Glen, what amount would be represented as the subsidiary's Building in a consolidation at December 31, 20x8, assuming the book value at that date is still 200,000?
Transcribed Image Text:Watkins, Inc. acquires all of the outstanding stock of Glen Corporation on January 1, 20x6. At that date, Glen owns only three assets and has no liabilities: Book Value Fair Value Inventory 40,000 50,000 Equipment (10 year life) 80,000 75,000 Building (20 year life) 200,000 300,000 If Watkins pays 450,000 in cash for Glen, what amount would be represented as the subsidiary's Building in a consolidation at December 31, 20x8, assuming the book value at that date is still 200,000?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Money Management and Achieving Financial Goals
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
SEE MORE TEXTBOOKS