Red CoAcquired 100% of Green, Inc

question 79

Multiple Choice

Red Co.acquired 100% of Green, Inc.on January 1, 2017.On that date, Green had land with a book value of $42,000 and a fair value of $52,000.Also, on the date of acquisition, Green had a building with a book value of $200,000 and a fair value of $390,000.Green had equipment with a book value of $350,000 and a fair value of $280,000.The building had a 10-year remaining useful life and the equipment had a 5-year remaining useful life.How much total expense will be in the consolidated financial statements for the year ended December 31, 2017 related to the acquisition allocations of Green?

• A) $43,000.
• B) $33,000.
• C) $ 5,000.
• D) $15,000.
• E) $0.

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Definitions:

T Distribution Table

A table used in statistics that shows the critical values of the t-distribution, aiding in hypothesis testing and confidence interval estimation.

Degrees Of Freedom

A concept in statistical analysis that represents the number of values in a calculation that are free to vary without violating any given constraints.

Area Under Curve

A measure or area in graphical analysis, often used in statistics to quantify the total value represented by the graphed data.

Student T-Distribution

A distribution of probability that occurs when the average of a population with a normal distribution is being estimated under conditions where the sample size is limited and the standard deviation of the population is not known.