Acquisition method to prepare its consolidated balance sheet

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Reference no: EM131819871

On January 1, 2015, the Shaw Corporation purchased 60% of the Ward Company's voting stock for $950,000. Ward's total assets had a book value of $1,400,000 and Ward's liabilities were reported at $190,000; the fair value of Ward's equipment was $200,000 greater than its book value. Shaw's assets immediately after the acquisition of Ward totaled 3,750,000 and liabilities were reported at $225,000.

Assuming that Shaw used the acquisition method to prepare its consolidated balance sheet, what was total consolidated assets as of January 1, 2015?

Reference no: EM131819871

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