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REY [17]
3 years ago
10

Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2015. On that date, Paar’s 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, 2017, 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. The consolidated balance for the Equipment account as of December 31, 2017 is $574,000. What would be the impact on consolidated balance for the Equipment account as of December 31, 2017 if the parent had applied the initial value method rather than the equity method?
Business
1 answer:
iogann1982 [59]3 years ago
4 0

Answer:

The method the parent use will have no effect on consolidated total because it is only for internal reporting purpose.

Explanation:

Paar's equipment book value—12/31/15 of                   $294,000

Add Kimmel's equipment book value—12/31/15 of    $190,400

Add Original acquisition-date allocation to

Kimmel's equipment of ($400,000 − $272,000) =          $128,000

Less Amortization of Allocation

($128,000/10 years * 3 years) =                               ($38,400)

<h3>Equals Consolidated Equipment of     $574,000 </h3>

The method the parent use will have no effect on consolidated total because it is only for internal reporting purpose.

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The correct answer is option A.

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<span>The question is incomplete, here is the complete question which I previously came across;</span>

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It is hard to decide if a judge will implement a non-competition agreement. While the privileged insights of a business are important, the law additionally puts value to a person's opportunity to seek after other work. To be enforceable Courts more often than not require that a contract not to compete be sensible. In California, non-competes are adequately unlawful except if you are selling a business. Different states will implement a few provisions, as a rule the trade secret protection, however not the work limitations.

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3 years ago
Which of the following would cause prices to drop? A. Increased production by business B. Increased taxes on business C. Higher
Ugo [173]
It would actually be an increased production by the business.

Haha, I had to think for a tiny bit and re-check my answer to make sure it was right before giving it. Would hate to see you get it wrong. 
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amid [387]

Answer:

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Explanation:

Here, we are interested in calculating the value of the stock at the given discount rate.

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According to the question, we identify the following;

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Plugging these values into the equation, we have;

Value of the stock = 1.58 ÷ (0.155 - (-0.0115)

Value of the stock = 1.58/(0.155 + 0.0115)

Value of the stock = 1.58/0.1665 = $9.5

5 0
3 years ago
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