Black Co. acquired 100% of Blue, Inc. on January 1, 2020. On that date, Blue had...

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Accounting

Black Co. acquired 100% of Blue, Inc. on January 1, 2020. Onthat date, Blue had land with a book value of $38,000 and a fairvalue of $49,000. Also, on the date of acquisition, Blue had abuilding 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 afair value of $280,000. The building had a 10-year remaining usefullife and the equipment had a 5-year remaining useful life. How muchtotal expense will be in the consolidated financial statements forthe year ended December 31, 2020 related to the acquisitionallocations of Blue

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Solution In the case of the fair value there will be adjustments regarding extra depreciation In the case of land there will be no depreciation charged In the case of Building there is See Answer

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