Solution-What amount would be represented as the subsidiary

What amount would be represented as the subsidiary

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Reference no: EM132675420

Raby, Inc. acquires all of the outstanding stock of Fletcher Corporation on January 1, 2017. At that date, Fletcher owns only three assets and has no liabilities:

BV FV

LAND    40,000         50,000
EQUIPMENT(10 YR LIFE)    80,000          75,000
BUILDING(20 YR LIFE) 200,000    300,00

Problem 1: If Raby pays $450,000 in cash for Fletcher, what amount would be represented as the subsidiary's Building in a consolidation at December 31, 2019, assuming the book value of the building at that date is still $200,000?

Problem 2: If Raby pays $450,000 in cash for Fletcher, what amount would be represented as the subsidiary's Equipment in a consolidation at December 31, 2019, assuming the book value of the equipment at that date is still $80,000?

Reference no: EM132675420

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What amount would be represented as the subsidiary

Reference no: EM132675420

Reference no: EM132675420

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