Don't use ai i will report you answer solve it as soon as possible with proper explanation Watkins, Incorporated acquires all of the outstanding stock of Glen Corporation on January 1, 2023. At that dathree assets and has no liabilities:LandEquipment (10-year life)Building (20-year life)Book Value$ 40,000Fair Value$ 50,00080,000200,00075,000300,000If Watkins pays $300,000 in cash for Glen, at what amount would the subsidiary's Building be repconsolidation?

Detailed explanation:Cash paid for the assets acquired, $ 300,000Assets acquiredBook ValueFair…

Answered: Watkins, Incorporated acquires all of…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 62P

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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: BookValue FairValue Land $ 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, 2022, assuming the book value of the building at that date is still $200,000?
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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: Book Fair Value Value $40,000 $50,000 80,000 75,000 Equipment (10-year life) Building (20-year life) 200,000 300,000 Land 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?
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