On December 31, 2018, a Company Has Capital Assets with a Cost

question 53

Multiple Choice

On December 31, 2018, A Company has capital assets with a cost of $250,000 and accumulated depreciation of $150,000 and B Company has capital assets with a cost of $180,000 and accumulated depreciation of $80,000. B Company's capital assets have a fair value of $200,000 on that date. If Company A acquires Company B on January 1, 2019, and prepares a consolidated balance sheet on that date, at what values should the capital assets appear on that balance sheet (using the net method) ?

• A) Cost of $430,000 and accumulated depreciation of $230,000.
• B) Cost of $450,000 and accumulated depreciation of $150,000.
• C) Cost of $610,000 and accumulated depreciation of $310,000.
• D)Cost of $630,000 and accumulated depreciation of $230,000.

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