When Peter Pan Co. acquired 80% of the common stock of Smee Corp., Smee owned land with

Question:

When Peter Pan Co. acquired 80% of the of Smee Corp., Smee owned land with a book value of $70,000 and a fair value of $100,000.
What amount should have been reported for the land in a consolidated at the acquisition date?
A. $56,000
B. $70,000
C. $80,000
D. $96,000
E. $100,000
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...