1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
DIA [1.3K]
1 year ago
11

If anderson applies the initial value method in accounting for kenneth, what is the consolidated balance for the equipment accou

nt as of december 31, 2021?
Business
1 answer:
Xelga [282]1 year ago
3 0

If Anderson applies the initial value method in accounting for Kenneth, the consolidated balance for the Equipment account as of December 31, 2021 will be $1,104,000.

Excess amortizations: (120,000 - 90,000 = 30,000/10 = 3,000 per year).

2021 Balance Goehler BV 975,000 + Kenneth BV 105,000 + Fair value adjustment 30,000 - amortization for 2017 and 2018 (3,000 × 2) = 1,104,000

What is Equipment account?

Equipment is a long-term asset account that records the cost of the equipment and is noncurrent. The income statement account will be debited for equipment depreciation over the course of its useful life Depreciation Expense and crediting the balance sheet account Accumulated Depreciation.

A company's usage of equipment as a type of fixed asset is recorded on the balance sheet under the line item "property, plant, and equipment" in the long-term assets section. Equipment is capitalized rather than immediately expensed when it is bought and put into operation. This makes sense given that these are regarded as concrete, long-term assets that help the company over a considerable amount of time. The cost of the assets is then written down throughout the duration of the machinery's useful life.

To know more about asset refer:

brainly.com/question/14404094

#SPJ4.

Disclaimer- The question was incomplete. Check below the full question.

Anderson Inc. acquires all of the voting stock of Kenneth, Inc. on January 4, 2020, at an amount in excess of Kenneth's fair value. On that date, Kenneth has equipment with a book value of $90,000 and a fair value of $120,000 (10-year remaining life). Anderson has equipment with a book value of $800,000 and a fair value of $1,200,000 (10-year remaining life). On December 31, 2018, Anderson has equipment with a book value of $975,000 but a fair value of $1,350,000 and Kenneth has equipment with a book value of $105,000 but a fair value of $125,000.

If Anderson applies the initial value method in accounting for Kenneth, what is the consolidated balance for the Equipment account as of December 31, 2018?

You might be interested in
An efficient way to move toward the Nash equilibrium is called:
laiz [17]

Answer:

A convention

Explanation:

Nash equilibrium is a theory or a concept of equilibrium, which is in the game theory ,where the possible result or the best outcome of the game and there is no incentive which could deviate from the strategy.

So, it is an effective way to move toward the Nash equilibrium is known or referred to a convention, which is a non- cooperative game.

6 0
2 years ago
Direct-mail questionnaires should be kept to a maximum of how many pages? Question options: One Two Three Four
ipn [44]

Answer:

One

Explanation:

This is because of the need to have a quick grasp and interest of the audience.

6 0
3 years ago
Read 2 more answers
Blake Edwards has done some research and has discovered that economists believe interest rates will rise significantly over the
joja [24]

Answer:

Economic conditions

Explanation:

Based on the scenario being described within the question it can be said that this is an example of Economic conditions influencing jobs in the future. These conditions are the different aspects that affect the overall economy of a country which include GDP growth potential, the unemployment rate, inflation, as well as policy orientations.

5 0
3 years ago
A Rhode Island state statute imposes fines on tire repair businesses whose pneumatic equipment does not include automatic shut-o
Anton [14]

Answer:

The correct answer is letter "D": negligence per se.

Explanation:

Negligence per se is a U.S. doctrine that is applied when there has been a clear statute breach. It is applied mainly in cases where the defendant has caused harm to the plaintiff by violating a statue that should have been of knowledge to the defendant.

6 0
2 years ago
An inferior good is Multiple Choice
stealth61 [152]

Answer:

B. not accurately defined by any of these statements.

Explanation:

An inferior good is defined as one whose the quantity demanded decreases as the income of its consumers increases and vice versa.

<em>Option A is incorrect because the income elasticity for inferior goods is negative and therefore, as the income of the consumers increases, the demand curve shifts to the left.</em>

<em>Option C is incorrect because an inferior good does not necessarily mean a fake good. A good can be inferior but yet meet all the standards for approval by the FDA.</em>

<em>Option D is incorrect. The price and quantity demand for inferior goods, just like normal goods do not vary directly. This is only applicable to luxurious goods.</em>

None of the statements in A, C, and D accurately defined an inferior goods.

Hence, the correct option is B.

4 0
3 years ago
Read 2 more answers
Other questions:
  • At the end of year 1, Rome Inc. held debt securities classified as available-for-sale securities. The securities were carried at
    7·1 answer
  • The monetary base and the money supply are expected to grow at a constant rate of 20% per year. Inflation and expected inflation
    11·1 answer
  • A negative externality or spillover cost occurs when
    10·1 answer
  • During your meeting with your client, Hayden Doyle, you recommended he purchase a personal liability umbrella policy (PLUP). Whi
    11·1 answer
  • "Universal Containers wants to maintain Service Level Agreements on its customer cases. Customers are provided different service
    15·1 answer
  • Explained moral lessons for the life of Okomfo Anokye​
    11·1 answer
  • You are an accounting student at a university and also a talented guitar player. During summer vacation, you are hired full time
    15·1 answer
  • More abundant leisure increases ______, but it ______ real gdp.
    7·1 answer
  • In the context of electronic communication, _____ involves indirect form of disrespect.
    12·1 answer
  • A brand new business-to-business purchase that is complex or risky and that requires extensive decision making is called:_______
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!