What amounts in the equipment account appear

Reference no: EM13259741

Treadway Corporation acquires Hooker, Inc., on January 1, 2010.The parent pays more for it than the fair value of the subsidiariesnet assets. On that date, Treadway has equipment with a book valueof $420,000 and a fair value of $530,000. Hooker has equipment witha book value of $330,000 and a fair value of $390,000. Hooker isgoing to use push-down accounting. Immediately after the acquisition, what amounts in the Equipment account appear onHooker's separate balance sheet and on the consolidated balancesheet?

a. $330,000 and $750,000

b. $330,000 and $860,000

c. $390,000 and $810,000

d. $390,000 and $920,000

Reference no: EM13259741

Questions Cloud

Discuss on the industry analysis : In this Case Study, you will research an airline company and give a brief overview of the company, identify the industry it is a part of, and complete a Five Forces Industry Analysis.

Ecuador is in south america : Which of the following statements about Ecuador is NOT true. Ecuador is in South America. The Andes Mountains are near Quito.

State calcium phosphide reacts with water to the equation : Calcium phosphide reacts with water according to the equation. Using 84.0g of Ca ?P? and 36.0g of H?O, What volume of PH? will be produced at 273 K and a pressure of 1520 torr

Determining the activity based costing : What is "Activity Based Costing" and how does it work? What does it do for a firm employing such a system? How do you go about developing such a system in a firm? What are the steps? What would an example look like?

What amounts in the equipment account appear : The acquisition, what amounts in the Equipment account appear on Hooker's separate balance sheet and on the consolidated balancesheet?

Describe one successful and one unsuccessful project : Describe one successful and one unsuccessful project. Using the cycle of vulnerability, determine for each project the stage at which the implementation processes were most successful and the stage at which interventions would have been especially..

Evaluate the month lease option : Evaluate the 24 month and 36 month lease option and make a recommendation on which is the best option for AMG.

Why is it so important to define the target market : What implications does the stage of a product in its life cycle have on the marketing strategy a company uses?

Discuss a single machine with variability of process times : Suppose the arrival rate is A = 10 units per hour, utilization of all ma- chines is 85 percent, and the arrival rate follows a Poisson distribution.

User Account

All Pages