Hanson CoAcquired All of the Common Stock of Roberts Inc

question 88

Essay

Hanson Co.acquired all of the common stock of Roberts Inc.on January 1, 2017, 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, 2018, 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, 2018?

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Definitions:

Publisher Mean

A statistical metric that represents the average or mean score of all participants on a particular test as determined by the test's publisher.

Nominal Scale

A scale of measurement in which numbers are arbitrarily assigned to represent different categories or variables. The only math that can be applied to these numbers is calculation of the mode.

Arbitrarily Assigned

Assignments or classifications made without any specific criteria or reason, relying on random choice.

Interval Scale

A scale of measurement in which there are equal distances between measurements but no absolute zero reference point.