Answer:
$1,104,000
Explanation:
The computation of the consolidated valance of the equipment account as on Dec 31, 2018 is shown below:
As per the data given in the question,
Particulars Amount
Equipment with a book value $975,000
Add: Kenneth Equipment = $105,000
Add: Original purchase price for Kenneth = $120,000 - $90,000 = $30,000
Less: Amortization of allocation = ($30,000 × 2) ÷ 10 = $6,000
Consolidated balance for equipment $1,104,000
We simply added the
= $975,000 + $105,000 + $30,000 - $6,000
= $1,104,000
