+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
The following data pertain to three divisions of Nevada Aggregates, Inc. The company's required rate of return on invested capital is 8 percent.
In the spotlight about FedEx Corporation, you get a feel for the amount of investment in assets and the resulting liabilities that are required to operate a competitive corp
A special order to purchase 10,000 units was recently received. Kandeed has enough capacity to fill the order, and filling the order would not disrupt current production or
Wayne's steaks inc. has a 9%, non callable,$100-par-value preferred stock issued outstanding.On january 1,the market price per share is $73.dividends are paid annualy on dec
1.At the beginning of 2013, VHF Industries acquired a machine with a fair value of $6,074,700 by signing a fouryear lease. The lease is payable in four annual payments of $2 m
Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 20,00
Analyze the tax implications for the following case study. Apply the IRS codes to determine itemized deductions for individuals. Support your conclusions with reference to spe
Watson Electric produces bulbs for emergency flashlights. The following data on the number of lumens (i.e. lumens measure the level of "brightness") for 40-watt bulbs were c