[SOLVED] Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2012. On that date, Paar's equipment (10- y…..

[SOLVED] Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2012. On that date, Paar’s equipment (10- y…..

We offer all "help with my paper" services e.g. Custom essay writing, Dissertation writing help, Research paper writing, and Term paper writing services at affordable prices. We cover all your paper help needs 24/7.

Get started

Order in Chat

97.5

Orders delivered on time

120

Academic disciplines covered

4.9/5

Average rating

Question 1 (of 8) value: 3.00 points Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2012. On that date, Paars equipment (10- year life) has a book value of $455,000 but a fair value of $570,000. Kimmel has equipment (10-year life) with a book value of $266,000 but a fair value of $380,000. Paar uses the equity method to record its investment in Kimmel. On December 31, 2014, Paar has equipment with a book value of $318,500 but a fair value of $453.700 consolidated balance for the Equipment account as of December 31, 2014? o. Kimmel has equipment with a book value of $186.200 but a fair value of $332,800. What is the O $618,700. O $584,500. O $786,500 o $504,700 References eBook & Resources Difficulty: Easy Multiple Choice

Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2012. On that date, Paar’s equipment (10- year life) has a book value of $455,000 but a fair value of $570,000. Kimmel has equipment (10-year life) with a book value of $266,000 but a fair value of $380,000. Paar uses the equity method to record its investment in Kimmel. On December 31, 2014, Paar has equipment with a book value of $318, 500 but a fair value of $453, 700. Kimmel has equipment with a book value of $186, 200 but a fair value of $332, 800. What is the consolidated balance for the Equipment account as of December 31, 2014? $618, 700. $584, 500. $786, 500 $504, 700.

Expert Answer

Paar’s equipment book value—12/31/14	318500
Kimmel’s equipment book value—12/31/14	186200
Original acquisition-date allocation to Kimmel’s equipment	114000
Amortization of allocation	-34200
Consolidated equipment	584500

Option 2 is correct