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Oksana_A [137]
3 years ago
5

The fair values of all of Sirius's assets and liabilities were equal to their book values except for inventory that had a fair v

alue of $85,000, land that had a fair value of $60,000, and buildings and equipment that had a fair value of $250,000. Buildings and equipment have a remaining useful life of 10 years with zero salvage value. Paradox Company decided to employ push-down accounting for the acquisition. Subsequent to the combination, Sirius continued to operate as a separate company. Based on the preceding information, what amount will be present in the revaluation capital account, when consolidating entries are prepared?
Business
1 answer:
lubasha [3.4K]3 years ago
5 0

Answer:

$0

Explanation:

The fair value is the value above the book value. The financial statements are prepared at historic cost and when the value of assets rises a revaluation account is created to present financial statements accurate. The fair values of Sirius's assets are equal to book value and all assets are presented at cost or book value. There will be no revaluation charged to the consolidated statement.

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3 years ago
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5 0
4 years ago
A purchase of a French bottle of wine by a resident of Honduras would be considered an ____ when counting GDP in Honduras. As a
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Answer:

import, subtract. export, added

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Since the bottle of wine was produced in France it had to be imported to Honduras to be consumed, imports enters the GDP equation with a minus sign. This implies imports are subtracted from the GDP equation. For a box of Honduras cigars to be consumed in Canada they had to be exported there, so these are counted as exports with enter the GDP equation with a plus sign. So exports are added.

7 0
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