Lowell Co. acquired 100% of Boston, Inc. on January 1, 2017. On that date, Boston had land with a book value of $42,000 and a fair value of $52,000. Also, on the date of acquisition, Boston had a building with a book value of $200,000 and a fair value of $390,000. Boston had equipment with a book value of $350,000 and a fair value of $280,000. Both companies use the same depreciation policy, that the building had a 10-year remaining useful life and the equipment had a 5-year remaining useful life.

On December 31, 2020, the two companies have the following assets:

	Lowell		Boston
	BV	FV	BV	FV
Land	50,000	60,000	32,000	45,000
Building	300,000	500,000	120,000	234,000
Equipment	600,000	390,000	70,000	56,000

When preparing the consolidation [A] entry to adjust the Buildings on December 31, 2020, Lowell should debit the building for what?

Answer rating: 100% (QA)

Solution On the date of consolidation lowell co should record the building acquired on fair mark... View the full answer