Watkins inc acquires all of the outstanding stock of glen, Ask an Expert

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Watkins, Inc. acquires all of the outstanding stock of Glen Corporation on January 1, 2012. At that date, Glen owns only three assets and has no liabilities:

If Watkins pays $450,000 in cash for Glen, what amount would be represented as the subsidiary's Equipment in a consolidation at December 31, 2014, assuming the book value of the equipment at that date is still $80,000? ?

A) $73,500. ? B) $80,000. C) $75,000. D) $76,500. ? E) $70,000.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91874355

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