MacHeath Inc.bought 60% of the outstanding common stock of Nomes Inc.in an acquisition that resulted in the recognition of goodwill.Nomes owned a piece of land that cost $250,000 but was worth $600,000 at the date of acquisition.What value would be attributed to this land in a consolidated balance sheet at the date of acquisition?
A)$250,000.
B)$150,000.
C)$600,000.
D)$360,000.
E)$460,000.

Question

MacHeath Inc.bought 60% of the outstanding common stock of Nomes Inc.in an acquisition that resulted in the recognition of goodwill.Nomes owned a piece of land that cost $250,000 but was worth $600,000 at the date of acquisition.What value would be attributed to this land in a consolidated balance sheet at the date of acquisition?
A)$250,000. 
B)$150,000. 
C)$600,000. 
D)$360,000. 
E)$460,000.

Quizplus · Accepted Answer

FV of the Land $600,000