Lowell Co. acquired 100% of Boston, Inc. on January 1, 2017. On that date, Boston...
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Lowell Co. acquired 100% of Boston, Inc. on January 1, 2017. On that date, Boston had land with a book value of $42,000 and a fair value of $52,000. Also, on the date of acquisition, Boston had a building with a book value of $200,000 and a fair value of $390,000. Boston had equipment with a book value of $350,000 and a fair value of $280,000. Both companies use the same depreciation policy, that the building had a 10-year remaining useful life and the equipment had a 5-year remaining useful life.
On December 31, 2020, the two companies have the following assets:
| Lowell | Boston | |||
| BV | FV | BV | FV | |
| Land | 50,000 | 60,000 | 32,000 | 55,000 |
| Building | 300,000 | 500,000 | 120,000 | 334,000 |
| Equipment | 600,000 | 390,000 | 70,000 | 66,000 |
What is the consolidated balance of building on December 31, 2020, when Lowell prepares for the consolidated financial statement?
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