In an acquisition where 100% control is acquired, how would the land accounts of the parent and the land accounts of the subsidiary be reported on consolidated

.  In an acquisition where 100% control is acquired, how would the land accounts of the parent and the land accounts of the subsidiary be reported on consolidated financial statements?

Parent
Subsidiary
A)
Book Value
Book Value
B)
Book Value
Fair Value
C)
Fair Value
Fair Value
D)
Fair Value
Book Value
E)
Cost
Cost

Answer: B

Learning Objective: 02-04 

Learning Objective: 02-05

Topic: Acquisition―Valuation principles

Topic: Acquisition―Allocate fair value

Difficulty: 2 Medium  

Blooms: Remember

AACSB: Reflective Thinking

AICPA: BB Critical Thinking

 AICPA: FN Measurement