Patton, Inc. acquires 80 percent of the voting stock of Sutton, Inc. on January 2, 2020....

 

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Patton, Inc. acquires 80 percent of the voting stock of Sutton, Inc. on January 2, 2020. On that date, Sutton has equipment with a book value of $600,000 and a fair value of $680,000 (10-year remaining life). On December 31, 2023, Patton has equipment with a book value of $875,000 and a fair value of $950,000, and Sutton has equipment with a book value of $540,000 and a fair value of $550,000. If Patton applies the equity value method in accounting for investment in Sutton, what is the consolidated balance for the Equipment account as of December 31, 2023? Patton, Inc. acquires 80 percent of the voting stock of Sutton, Inc. on January 2, 2020. On that date, Sutton has equipment with a book value of $600,000 and a fair value of $680,000 (10-year remaining life). On December 31, 2023, Patton has equipment with a book value of $875,000 and a fair value of $950,000, and Sutton has equipment with a book value of $540,000 and a fair value of $550,000. If Patton applies the equity value method in accounting for investment in Sutton, what is the consolidated balance for the Equipment account as of December 31, 2023?