Solution-What amount of depreciation expense should be

What amount of depreciation expense should be reported

Reference no: EM132725661

On January 1, 2019, Pail Corporation acquired 60 percent of Sand Company's common stock for $420,000 cash. The fair value of the noncontrolling interest at that date was determined to be $280,000.

At the date of the business combination, the book values of Sand's net assets and liabilities approximated fair value except for depreciable plant assets, which were OVERvalued by $2000 and Inventory, which was UNDERvalued by $4000 The remaining useful life of the plant assets was set at 10 years.
For the year ended December 31, 2019, Pail reported Depreciation Expense of $12000 on its general ledger. Sand reported Depreciation Expense of $5000 on its general ledger.

Problem 1: What amount of DEPRECIATION EXPENSE should be reported on the 12/31/19 consolidated Income Statement?

Reference no: EM132725661

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What amount of depreciation expense should be reported

Reference no: EM132725661

Reference no: EM132725661

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