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JulijaS [17]
3 years ago
7

Papa Company acquired land with an office building on it from its subsidiary, Sonny Company, for $110,000. Prior to the sale, So

nny's carrying value of the land was $60,000 and its net carrying value of the building was $50,000. At the time of the transaction, Papa appropriately determined that the land had a fair value of $75,000 and the building had a fair value of $35,000. At what amount should the land and building be reported on Papa's consolidated statements prepared immediately after the transaction?
Land Building
A) $75,000 $35,000
B) $55,000 $55,000
C) $60,000 $50,000
Business
1 answer:
DIA [1.3K]3 years ago
5 0

Answer:

C) $60,000 $50,000

Explanation:

In the consolidated balance sheet, the assets of Papa Company must be recognized for their book value, not their fair value. Since the acquisition was 110,000 with distribution in Sonny Company of 60,000 for the land and 50,000 for the building, that distribution must be maintained.

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Fabiola is an accountant with Rovers and Associates, a law firm in downtown Memphis. The firm maintains a checking account with
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Answer:

C) Drawer

Explanation:

A drawer is an individual or institution that issues and signs a bill of exchange instructing a bank or drawee to pay the specified amount to the payee. The drawer is the person who writes and signs a cheque to a third party or payee. In a situation where the cheque is to pay oneself, the drawer is the same as the payee.

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Which type of break can you insert if you want to force text to begin on the next page?
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Insert a page break.
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Comprehensive coverage under the Personal Auto Policy pays for damage to the insured auto caused by all of the following except:
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The accounts that would affect the net income in the income statement are:

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<h3>Which items affect net income?</h3>

The ending and beginning merchandise inventory play a role in the cost of goods sold which is deducted from net income.

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Find out more on accounts in the income statement at brainly.com/question/21851842.

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