Compute the consolidated equipment (net) account at December 31, 2018

A)  $2,100.

B)  $3,500.

C)  $3,300.

D)  $3,000.

E)  $3,200.

Answer: B

Learning Objective: 02-05 

Learning Objective: 02-06a 

Learning Objective: 02-07

Topic: Acquisition method―Allocate fair value

Topic: Acquisition―Calculate consolidated balances

Difficulty: 2 Medium  

Blooms: Apply

AACSB: Knowledge Application

AICPA: BB Critical Thinking

AICPA: FN Measurement

Feedback: Consolidated Value of Equipment (net) Determined by adding the book value of Goodwin’s Equipment Account ($2,100)to the Fair Value of Corr’s Equipment (net)($1,400) for a totalconsolidated fair value of $3,500