Beesly Co Owned All of the Voting Common Stock of Halpert

question 11

Multiple Choice

Beesly Co. owned all of the voting common stock of Halpert Corp. The corporations' balance sheets dated December 31, 2020, include the following balances for land: -Beesly - $461,000, and -Halpert - $265,000. On the original date of acquisition, the book value of Halpert's land was equal to its fair value. On May 2, 2021, Beesly sold to Halpert a parcel of land with a book value of $75,000. The selling price was $88,000. There were no other transfers, which affected the companies' land accounts during 2020. What is the consolidated balance for land on the 2021 balance sheet?

• A) $713,000.
• B) $726,000.
• C) $739,000.
• D) $801,000.
• E) $814,000.

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Definitions:

Union Bodies

Organizations that represent the collective interests of workers in negotiations with employers regarding wages, work conditions, and rights.

Partnership

A form of business organization defined by the Uniform Partnership Act as “an association of two or more persons who carry on as co-owners of a business for profit.”

Strikebreaking

The act of using non-union workers to replace striking employees in order to keep an organization operational during a labor strike.