On December 31,2009,Rudd Company acquired 80 percent of the common stock of Wilton Company.At the time,Rudd held land with a book value of $100,000 and a fair value of $260,000;Wilton held land with a book value of $50,000 and fair value of $600,000.Using the parent company theory,at what amount would land be reported in a consolidated balance sheet prepared immediately after the combination?
A)$550,000
B)$590,000
C)$700,000
D)$860,000

Question

Quizplus · Accepted Answer

The Answer of On December 31,2009,Rudd Company acquired 80 percent of the common stock of Wilton Company.At the time,Rudd held land with a book value of $100,000 and a fair value of $260,000;Wilton held land with a book value of $50,000 and fair value of $600,000.Using the parent company theory,at what amount would land be reported in a consolidated balance sheet prepared immediately after the combination?
A)$550,000
B)$590,000
C)$700,000
D)$860,000

On December 31,2009,Rudd Company Acquired 80 Percent of the Common