Hanson Co Acquired All of the Common Stock of Roberts Inc

question 119

Essay

Hanson Co. acquired all of the common stock of Roberts Inc. on January 1, 2020, transferring consideration in an amount slightly more than the fair value of Roberts' net assets. At that time, Roberts had buildings with a twenty-year useful life, a book value of $600,000, and a fair value of $696,000. On December 31, 2021, Roberts had buildings with a book value of $570,000 and a fair value of $648,000. On that date, Hanson had buildings with a book value of $1,878,000 and a fair value of $2,160,000.Required:What amount should be shown for buildings on the consolidated balance sheet dated December 31, 2021?

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Definitions:

Demand

The extent of a good or service that patrons are inclined and have the ability to secure at different price ranges over a set period.

Substitute

A product or service that can be used in place of another, offering consumers an alternative choice.

Equilibrium Price

The price point where market supply matches market demand, leading to a balanced market condition.

Pens

Writing instruments that use ink to leave a mark on surfaces, typically used for handwriting.