Parr Company purchased 100% of the voting common stock of Super Company for $2,000,000. There are no liabilities. The following book and fair values pertaining to Super Company are available: The amount of machinery that will be included in on the consolidated balance sheet is:
A)$560,000
B)$860,000
C)$600,000
D)$900,000

Question

Parr Company purchased 100% of the voting common stock of Super Company for $2,000,000. There are no liabilities. The following book and fair values pertaining to Super Company are available:  The amount of machinery that will be included in on the consolidated balance sheet is:
A)$560,000 
B)$860,000 
C)$600,000 
D)$900,000

Quizplus · Accepted Answer

The consolidated balance sheet includes the subsidiary accounts at full fair value.

Parr Company Purchased 100% of the Voting Common Stock of Super