Compute the amount of consolidated land at date of acquisition

A)  $1,000.

B)  $   960.

C)  $   920.

D)  $   400.

E)  $   320.

Answer: A

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’s Land (Book Value of $600) + Osario Land (Fair Value on Acquisition Date of $400) = $1,000