Chain Co. owned all of the voting common stock of Shannon Corp. The corporations' balance sheets dated December 31, 2009, include the following balances for land: for Chain-$416,000 and for Shannon-$256,000. On the original date of acquisition, the book value of Shannon's land was equal to its fair value. On April 4, 2010, Chain sold to Shannon a parcel of land with a book value of $65,000. The selling price was $83,000. There were no other transactions which affected the companies' land accounts during 2010. What is the consolidated balance for land on the 2010 balance sheet?

Answer rating: 100% (QA)

In this case as the book value of the asset needs to be evaluated for next year on the b... View the full answer