Question: On January 1, 20X1. Davidson Company acquired 100 percent of Laura Company for $900,000 when Laura's book value was $700,000. At the acquisition date,

On January 1, 20X1. Davidson Company acquired 100 percent of Laura Company

On January 1, 20X1. Davidson Company acquired 100 percent of Laura Company for $900,000 when Laura's book value was $700,000. At the acquisition date, Laura's building (20-year remaining life) was undervalued in its financial records by $120,000. Also, patented technology (5-year remaining life) was undervalued by $80,000. At the end of 20X1. Davidson reports building of $640,000 while Laura reports building of $280,000. What amount is reported for building in the 20X1 consolidated balance sheet? O $920,000. O $984,000 O $1,042,000. O$1,034,000.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The correct answer is 1034000 Heres how to calculate the amount reported for building in the 20X1 co... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Contemporary Lighting Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs...

Aglow Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated activity cost pools and activity bases...

Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity...

On January 1, 20X1, Forest Company acquired 100 percent of Kent Company for $700,000 when Kent's book value was $540,000. At the acquisition date, Kent's trademark ( 20 year remaining life) was...

On January 1, 20X1, Fanny Company acquired 100 percent of Jackson Company for $900,000 when Jackson's book value was $700,000. At the acquisition date, Jackson's trademark ( 20 -year remaining life)...

On January 1, 20X1, Davidson Company acquired 100 percent of Laura Company for $900,000 when Laura's book value was $700,000. At the acquisition date, Laura's building (20-year remaining life) was...

On January 1, 20X1, Forest Company acquired 100 percent of Kent Company for $700,000 when Kent's book value was $540,000. At the acquisition date, Kent's building (20-year remaining life) was...

On January 1, 20X1, Danny Company acquired 100 percent of Lavender Company for $800,000 when Lavender's book value was $620,000. At the acquisition date, Lavender's building (20-year remaining life)...

On January 1, 20X1, Forest Company acquired 100 percent of Kent Company for $700,000 when Kent's book value was $540,000. At the acquisition date, Kent's building (20-year remaining life) was...

Using C programming with full step answers. Lab 4 Q.1 MSB and LSB Description Lab4-1 MSB and LSB The most significant bit (MSB) is the bit in a multiple-bit binary number with the largest...

Prepare an analysis of both of the following firms 1. Review the Starbucks Corporation - Financial Data - Annual Reports. Review the Annual Report | JDE Peet's (jdepeets.com). 2. Discuss how each...

Question Use Simpson's rule with 2 subintervals to estimate 1 5 f ( x ) d x given the table of f ( x ) below. \ table [ [ x , f ( x )

Which of the following stock investments should be accounted for using the cost method? a. Investments of less than 20% and investments between 20% and 50% b. Investments of less than 20% c. All...

Does the fact that there is no written partnership agreement for HDD mean that no partnership exists? If the law suits are successful, and if HDD does not have enough money to pay for what has been...

You have recently seen that there is no generally reliable SSA criterion for triangle congruence. If the angle part of such a correspondence is a right angle, however, the criterion is reliable....

Sam pays $10,000 now to purchase a special deferred perpetuity-due. The perpetuity-due has monthly payments. Each payment is $100 for the first five years and then decreases to $50 thereafter. Given...

resistor of 2 ohm is connected to another resistor of 2 ohm in series. A similar pattern is connected in parallel upto infinity. What is the total resistance of the circuit ? 7:44 PM

Which of the following are common attifudes and stigmas about homelesshess, Veterans, and ethricty?7. Cintb. Have an addetionc. Wolent dangeror as y mentoyd. Teronsts or ominalse. Allol the above

Horizon Financial Inc. was organized on February 28, 2016. Projected selling and administrative expenses for each of the first three months of operations are as follows:...

Silicon Solutions Inc. manufactures RAM memory chips for personal computers. An activity analysis was conducted, and the following activity costs were identified with the manufacture and sale of...

Cityscape Hotels has 200 rooms available in a major metropolitan city. The hotel is able to attract business customers during the weekdays, and leisure customers during the weekend. However, the...

If you operate a home-based business, the Canada Revenue Agency (CRA) will usually allow you to report certain office-in-home expenses. The portion of heat, insurance, electricity, property taxes,...

When real estate is sold, the years property taxes are allocated to the vendor and the purchaser in proportion to the number of days that each party owns the property during the year. If the...

Kevin, Lyle, and Marnie operate Food Country as a partnership. Their agreement provides that half of the profit in each calendar quarter be distributed in proportion to each partners investment in...