Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. paar corporation bought 100 percent of kimmel, inc

Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2018. On that date,...

50.1K

Verified Solution

Question

Accounting

Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2018. On that date, Paars equipment (10-year remaining life) has a book value of $420,000 but a fair value of $520,000. Kimmel has equipment (10-year remaining life) with a book value of $272,000 but a fair value of $400,000. Paar uses the equity method to record its investment in Kimmel. On December 31, 2020, Paar has equipment with a book value of $294,000 but a fair value of $445,200. Kimmel has equipment with a book value of $190,400 but a fair value of $357,000. What is the consolidated balance for the Equipment account as of December 31, 2020? Multiple Choice $612,600 $574,000 $802,200 $484,400

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students