Question

Willkom Corporation bought 100 percent of Szabo, Inc., on January 1, 2010. On that date, Willkom’s equipment (10-year life) has a book value of $300,000 but a fair value of $400,000. Szabo has equipment (10-year life) with a book value of $200,000 but a fair value of $300,000. Willkom uses the equity method to record its investment in Szabo. On December 31, 2012, Willkom has equipment with a book value of $210,000 but a fair value of $330,000. Szabo has equipment with a book value of $140,000 but a fair value of $270,000. What is the consolidated balance for the Equipment account as of December 31, 2012?
a. $600,000.
b. $490,000.
c. $480,000.
d. $420,000.



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  • CreatedOctober 04, 2014
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