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 buildings that would be reported in a December 31, 2020, consolidated balance sheet.

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 buildings that would be reported in a December 31, 2020, consolidated balance sheet.

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 buildings that would be reported in a December 31, 2020, consolidated balance sheet.

Jackson Company Acquires 100% of the Stock of Clark Corporation