Dodd Co. acquired 75% of the common stock of Wallace Corp. for $1,800,000. The fair value of Wallace's net assets was $2,100,000, and the book value was $1,900,000. The noncontrolling interest shares of Wallace Corp. are not actively traded.What is the dollar amount of Wallace Corp.'s net assets that would be represented in a consolidated balance sheet prepared at the date of acquisition?
A) $1,575,000.
B) $1,800,000.
C) $1,900,000.
D) $2,100,000.
E) $2,400,000.

Question

Quizplus · Accepted Answer

The net assets in a consolidated balance sheet are represented at their fair value at the date of acquisition, which is $2,100,000.

Dodd Co Acquired 75% of the Common Stock of Wallace Corp