Ask Question
26 June, 16:16

Mittelstaedt Inc., buys 60 percent of the outstanding stock of Sherry, Inc. Sherry owns a piece of land that cost $207,000 but had a fair value of $549,000 at the acquisition date. What value should be attributed to this land in a consolidated balance sheet at the date of takeover? A. $549000B. $337000C. $127200D. $421800

+3
Answers (1)
  1. 26 June, 16:20
    0
    A. $549000

    Explanation:

    Given information

    Number of outstanding stock of Sherry, Inc = 60%

    The cost of the land = $207,000

    Fair value at the acquisition date = $549,000

    By considering the above information, the value reflected in a consolidated balance sheet is $549,000.

    The historical principle says that the fixed assets should be recorded at the purchase price or acquisition cost only and the same is to be considered
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Mittelstaedt Inc., buys 60 percent of the outstanding stock of Sherry, Inc. Sherry owns a piece of land that cost $207,000 but had a fair ...” 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