Problempaar corporation bought 100 percent of kimmel inc on, Ask an Expert

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Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2012. On that date, Paar's equipment (10-year life) has a book value of $382,500 but a fair value of $548,500. Kimmel has equipment (10-year life) with a book value of $270,000 but a fair value of $432,000. Paar uses the equity method to record its investment in Kimmel. On December 31, 2014, Paar has equipment with a book value of $267,750 but a fair value of $476,750. Kimmel has equipment with a book value of $189,000 but a fair value of $412,800.

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Question: What is the consolidated balance for the Equipment account as of December 31, 2014?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91165947

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