Answer:
Consolidated Balance for the Equipment = $527,000
Explanation:
given data
January 1, 2018
Parrett book value = $360,000
fair value = $480,000
Jones book value = $240,000
fair value = $350,000
December 31, 2018
Parrett book value of $250,000
fair value of $400,000
Jones book value = $200,000
fair value = $320,000
solution
we Consolidate here Balance for the Equipment that is as
first we take Jones 's Equipment that is
Jones 's Equipment = $350,000 - $240,000
Jones 's Equipment = $110,000.00 ....................1
and
Parrett Equipment Book value = $250,000.00 ..............2
Jones Equipment Book Value = $200,000.00 ................3
so that Excess Amortization will be
Excess Amortization = ( $110,000 ÷ 10 years ) × 3 year
Excess Amortization = $33,000.00 ...................4
Consolidated Balance for the Equipment will be
Consolidated Balance for the Equipment = $110,000.00 + $250,000.00 + $200,000.00 - $33,000.00
Consolidated Balance for the Equipment = $527,000
