What amounts in the equipment account appear

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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

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