Jackson Company acquires 100% of the stock of Clark Corporation on January 1, 2020, for $4,100 cash. As of that date Clark has the following trial balance: Net income and dividends reported by Clark for 2020 and 2021 follow: The fair value of Clark's net assets that differ from their book values are listed below: Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life.Compute the amount of Clark's equipment that would be reported in a December 31, 2020, consolidated balance sheet.
A) $825.
B) $1,000.
C) $1,175.
D) $1,350.
E) $1,525.

Question

Jackson Company acquires 100% of the stock of Clark Corporation on January 1, 2020, for $4,100 cash. As of that date Clark has the following trial balance:  Net income and dividends reported by Clark for 2020 and 2021 follow:  The fair value of Clark's net assets that differ from their book values are listed below:  Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life.Compute the amount of Clark's equipment that would be reported in a December 31, 2020, consolidated balance sheet.
A) $825. 
B) $1,000. 
C) $1,175. 
D) $1,350. 
E) $1,525.

Quizplus · Accepted Answer

The Answer of Jackson Company acquires 100% of the stock of Clark Corporation on January 1, 2020, for $4,100 cash. As of that date Clark has the following trial balance:  Net income and dividends reported by Clark for 2020 and 2021 follow:  The fair value of Clark's net assets that differ from their book values are listed below:  Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life.Compute the amount of Clark's equipment that would be reported in a December 31, 2020, consolidated balance sheet.
A) $825. 
B) $1,000. 
C) $1,175. 
D) $1,350. 
E) $1,525.

Jackson Company Acquires 100% of the Stock of Clark Corporation