contestada

Black Co. acquired 100% of Blue, Inc. on January 1, 2020. On that date, Blue had land with a book value of $38,000 and a fair value of $49,000. Also, on the date of acquisition, Blue had a building with a book value of $250,000 and a fair value of $460,000. Blue had equipment with a book value of $340,000 and a fair value of $280,000. The building had a 10-year remaining useful life and the equipment had a 5-year remaining useful life. How much total expense will be in the consolidated financial statements for the year ended December 31, 2020 related to the acquisition allocations of Blue

Relax

Respuesta :

anthougo

Answer:

Black Co.

Total expenses for the year ended December 31, 2020 related to the acquisition allocations of Blue are:

= $102,000

Explanation:

a) Data and Calculations:

Assets of Blue Corporation:

                            Book Value         Fair Value   Depreciation Expense

Land                      $38,000               $49,000         $0

Building                250,000               460,000         46,000

Equipment            340,000              280,000         56,000

Total                   $628,000            $789,000      $102,000

Remaining useful life:

Building = 10 years

Equipment = 5 years

Straight-line Depreciation:

Building = $46,000 ($460,000/10)

Equipment = $56,000 ($280,000/5)      

Otras preguntas