Perth Corporation acquired a 100% interest in Sansone Company for $1,600,000 when Sansone had no liabilities.The book values and fair values of Sansone's assets were Immediately following the acquisition,equipment will be included on the consolidated balance sheet at
A)$150,000.
B)$200,000.
C)$210,000.
D)$280,000.

Question

Perth Corporation acquired a 100% interest in Sansone Company for $1,600,000 when Sansone had no liabilities.The book values and fair values of Sansone's assets were  Immediately following the acquisition,equipment will be included on the consolidated balance sheet at
A)$150,000. 
B)$200,000. 
C)$210,000. 
D)$280,000.

Quizplus · Accepted Answer

C)The assets will be recorded at fair value.When investment cost ($1,600,000)exceeds the fair value of net assets ($1,200,000),the difference is goodwill.

Perth Corporation Acquired a 100% Interest in Sansone Company for $1,600,000