Question: Assume that Peter Company acquired Sam Company on January 1
Assume that Peter Company acquired Sam Company on January 1, 2015, for $ 100,000 cash. At the time, the carrying amount of Sam Company was $ 90,000. The fair value was $ 96,000, with property, plant, and equipment having fair values in excess of their carrying amounts by $ 6,000. The property, plant, and equipment has a remaining life of three years and is depreciated using the straight-line method with no residual value. During 2015, the companies reported the following operating results:
Compute consolidated net earnings for the year ended December 31, 2015.
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