Compute the amount of consolidated equipment at date of acquisition

A)  $480.

B)  $580.

C)  $559.

D)  $570.

E)  $560.

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 Acquisition Date Equipment (Book Value of $480) + (Osario’s Equipment with Fair Value on Acquisition Date of $100) = $580