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Consolidate+Multiple+choices - of land that cost $200,000...

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Atwater Company acquires 80 percent of the outstanding voting stock of Belwood Company. On that date, Belwood possesses a building with a $160,000 book value but a fair market value of $220,000. Assuming that a bargain purchase has not been made, at what value would this building be consolidated under each of the following? a. Economic unit concept. b. Proportionate consolidation concept. c. Parent company concept. 1. Bailey, Inc., buys 60 percent of the outstanding stock of Luebs, Inc., in a purchase that resulted in the recognition of goodwill. Luebs owns a piece
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Unformatted text preview: of land that cost $200,000 but was worth $500,000 at the date of purchase. For each of the three concepts described in this chapter, what value would be attributed to this land in a consolidated balance sheet at the date of takeover? Economic Proportionate Parent Company Unit Concept Consolidation Concept a. $500,000 $300,000 $500,000 b. $200,000 $120,000 $500,000 c. $200,000 $120,000 $380,000 d. $500,000 $300,000 $380,000...
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