+1-415-670-9189
info@expertsmind.com
Determine amount using the parent company theory
Course:- Accounting Basics
Reference No.:- EM13149009




Assignment Help
Assignment Help >> Accounting Basics

On December 31, 2009, Rudd Company purchased 80 percent of the common stock of Wilton Company. At the time, Rudd held land with a book value of $100,000 and a fair value of $260,000; Wilton held land with a book value of $50,000 and fair value of $600,000. Using the parent company theory, at what amount would land be reported in a consolidated balance sheet prepared immediately after the combination?

A. $550,000.

B. $590,000.

C. $700,000.

D. $860,000.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
When the FASB issues a new generally accepted accounting principle, it may require companies to apply the new principle prospectively, or to account for the change by the retr
A company enters into a futures contract with the intent of hedging an account payable of DM400,000 due on December 31. The contract requires that if the U.S. dollar value o
Peasant's investment account balance at teh beginning of 2006 was $581.000. during 2006 slave reports a net loss of $60,000 yet pays dividends totaling $25,000. Calculate th
Madison Company issues $5,000,000 face value, 12%, 5-year bonds payable on December 31, 2005. Interest is paid semiannually each June 30 and December 31. The bonds sell at a
Koch exchanges business equipment with an adjusted basis of $40,000 for business equipment with a fair market value of $65,000. If the exchange qualifies for like-kind excha
Internal control is a plan of organization and system of procedures implemented by company _____ and the _____ designed to accomplish five objectives.The two most common typ
The SEC and its European equivalent are trying to merge their respective views of GAAP (Generally Accepted Accounting Principles). What are the easy points and what are the
The car was covered by a $2,000 deductible insurance policy. Norm did not file a claim against the insurance policy because of a fear that reporting the accident would resul