Scott Co Acquired 70% of Gregg Co

question 3

Multiple Choice

Scott Co. acquired 70% of Gregg Co. for $525,000 on December 31, 2019 when Gregg's book value was $580,000. The Gregg stock was not actively traded. On the date of acquisition, Gregg had equipment (with a ten-year life) that was undervalued in the financial records by $170,000. One year later, the two companies provided the selected amounts shown below. Additionally, no dividends have been paid. What is the consolidated balance of the Equipment account at December 31, 2020?

• A) $814,000.
• B) $821,000.
• C) $831,000.
• D) $797,000.
• E) $661,000.

---

Definitions:

Defamation

The act of damaging someone's reputation through false statements.

Best Defence

The most effective legal argument or strategy used to achieve a favorable outcome in a legal case.

Innuendo

A statement or remark that indirectly suggests something derogatory, but does so without stating it directly.

False Rumour

An unfounded or untrue piece of information spread among people, which can potentially cause harm or misunderstanding without being based on facts.