Compute the amount of consolidated buildings (net) at date of acquisition

A)  $1,700.

B)  $1,760.

C)  $1,640.

D)  $1,320.

E)  $   500.

Answer: B

Learning Objective: 02-05 

Learning Objective: 02-06a

Learning Objective: 02-07

Topic: Acquisition―Allocate fair value

Topic: Acquisition―Calculate consolidated balances

Difficulty: 2 Medium  

Blooms: Apply

AACSB: Knowledge Application

AICPA: BB Critical Thinking

AICPA: FN Measurement

Feedback: Moody Buildings on Acquisition Date (Book Value of $1,260) + Osario Buildings on Acquisition Date ($500 Fair Value) = $1,760