What is the consolidated balance for the equipment account

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Reference no: EM132378520

Question :

On January 1, 2019, Shell Corp. paid $1,000,000 to acquire Marlin Co. Marlin maintained separate incorporation. Shell used the equity method to account for the investment. The following information is available for Marlin's (the Subsidiary) assets, liabilities, and stockholders' equity accounts on January 1, 2019:

 

Book Value

Fair Value

Current Assets

120,000

120,000

Land

72,000

192,000

Building (20 -year life)

200,000

200,000

Equipment (10- year life)

550,000

600,000

Current Liabilities

(24,000)

(24,000)

Long -Term Liabilities

(120,000)

(120,000)

Common Stock

(228,000)

 

Additional Paid-in Capital

(354,000)

 

Retained Earnings

(216,000)

 

*p ntheses designate credit balances.

If the book value of Shell Corp.'s (the Parent) equipment on January 1, 2019 was $725,000 and the fair value was $800,000, what is the consolidated balance for the Equipment account on the acquisition date January 1, 2019?

Reference no: EM132378520

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