Utah Inc. acquired all of the outstanding common stock of Trimmer Corp. on January 1, 2019. At that date, Trimmer owned only three assets and had no liabilities:
If Utah paid $300,000 in cash for Trimmer, what allocation and amortization should have been assigned to the subsidiary's Building account and its Equipment account in a December 31, 2021 consolidation?
Definitions:
Discharge
The release or extinguishment of an obligation, such as a debt or duty, usually upon its fulfillment or through legal processes.
Performance
The execution, accomplishment, or carrying out of something such as a task, a contract, or a duty.
Accord and Satisfaction
A legal agreement between parties to settle a dispute by both agreeing to and performing new terms different from the original contract.
Original Debt
The initial amount of money borrowed or owed, before any interest or fees are added.
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