Cascade Ltd. acquired 100% of the voting shares of Tumble Inc. on December 31, 2023. At that time, Tumble had a client list with a fair value of $140,000 greater than the carrying value. The estimated useful life was 7 years. Which adjustments must be made in the December 31, 2025, consolidated statements in relation to the FVD of the client list? 

 A) Consolidated Sl: increase depreciation expense by $20,000 

Consolidated SFP: increase the client list by $100,000 

B) Consolidated Sl: decrease depreciation expense by $20,000 

Consolidated SFP: increase the client list by $100,000

 C) Consolidated Sl: decrease depreciation expense by $20,000 

 Consolidated SFP: increase the client list by $80,000

 D) Consolidated Sl: increase depreciation expense by $20,000

 Consolidated SFP: increase the client list by $80,000

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The correct answer is A Consolidated Sl ... View the full answer