If Watkins pays $450,000 in cash for Glen, what amount would be represented as the subsidiary's Equipment in a consolidation at December 31, 2019, assuming the book value of the equipment at that date is still $80,000?
A) $70,000.
B) $73,500.
C) $75,000.
D) $76,500.
E) $80,000.

Question

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The consolidation entry would be:Debit: Investment in Glen $450,000Credit: Cash $450,000Credit: Equipment $76,500Credit: Goodwill $73,500

If Watkins Pays $450,000 in Cash for Glen, What Amount