Scott Co Acquired 70% of Gregg Co

question 25

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.

Grasp how changes in the money supply affect interest rates and aggregate demand.

Comprehend how shifts in aggregate demand influence the economy.

Identify the effects of fiscal policy on aggregate demand.

Analyze the impact of government spending and taxes on the economy.

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Definitions:

Nutritional Rehabilitation

An initial phase of treatment in a number of cases of anorexia nervosa that includes supportive nursing care, day-to-day increased caloric intake, nutrition counseling, support, and, in some programs, motivational interviewing.

Cognitive-behavioral Therapy

A mental health therapy aimed at amplifying contentment and addressing concerns through the restructuring of ineffectual thoughts, feelings, and actions.

Autonomy

The right or condition of self-governance; a person's capacity to make an informed, uncoerced decision.

Eating Disorders

Mental health disorders characterized by unhealthy eating habits, which can include anorexia nervosa, bulimia nervosa, and binge eating disorder.