What is the amount of excess land allocation attributed to the controlling interest at the acquisition date?
A) $ 0.
B) $30,000.
C) $22,500.
D) $25,000.
E) $17,500.

Question

Quizplus · Accepted Answer

The excess land allocation refers to the amount by which the fair value of the land acquired exceeds the recorded value of the land on the seller's books. From the given information, the fair value of the land is $75,000, while the recorded value of the land is $52,500 ($45,000 + $7,500). Therefore, the excess land allocation is $22,500 ($75,000 - $52,500). This excess land allocation is attributed to the controlling interest at the acquisition date, as it represents the increase in the value of the land that the controlling interest now owns.

What Is the Amount of Excess Land Allocation Attributed to the Controlling