Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2015. On that date, Paar's equipment (10-year remaining life) has a book value of $420,000 but a fair value of $520,000. Kimmel has equipment (10-year remaining life) with a book value of $272,000 but a fair value of $400,000. Paar uses the equity method to record its investment in Kimmel. On December 31, 2017, Paar has equipment with a book value of $294,000 but a fair value of $445,200. Kimmel has equipment with a book value of $190,400 but a fair value of $357,000. The consolidated balance for the Equipment account as of December 31, 2017 is $574,000. What would be the impact on consolidated balance for the Equipment account as of December 31, 2017 if the parent had applied the initial value method rather than the equity method?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2015. On that date, Paar's equipment (10-year remaining life) has a book ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
It has come to your attention that several different departments in your organizations are using workgroup information systems.
Answers (1)
The time you spend learning and practicing ___can save your life and the lives of others? A. Tricks of the trade B. Shortcuts C. Safety procedures D. Basic construction skills
Answers (1)
The part of the disposable income that is not consumed by households is:
Answers (1)
It costs a firm that sells blueberry jam $6 to sell a single jar of jam. This firm makes $10 in revenue from each jar of jam it sells. If this firm sells 10 jars of jam, what is its total profit?
Answers (1)
January 1 of this year, a Company completed the following transactions (assume a 9% annual interest rate): Bought a delivery truck and agreed to pay $60,400 at the end of three years.
Answers (1)
New Questions in Business
Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $110,500, and it estimates that 6% will be uncollectible. Required: 1.
Answers (1)
Which skills are most required for someone in Design? A) knowledge of building processes, knowledge of specialized tools, and knowledge of building laws B) drawing skills, creativity for new ideas, and ability to model large-scale building projects
Answers (1)
Stock X has a standard deviation of 22 percent per year and stock Y has a standard deviation of 8 percent per year. The correlation between stock A and stock B is. 21.
Answers (1)
You are evaluating two different silicon wafer milling machines. The Techron I costs $276,000, has a three-year life, and has pretax operating costs of $75,000 per year.
Answers (1)
David is certified by his doctor as terminally ill with liver disease. His doctor certifies that he cannot reasonably be expected to live for more than a year. He sells his life insurance policy to Viatical Settlements, Inc., for $250,000.
Answers (2)