Parrett Corp

question 22

Multiple Choice

Parrett Corp.bought one hundred percent of Jones Inc.on January 1,2009,at a price in excess of the subsidiary's fair value.On that date,Parrett's equipment (ten-year life) had a book value of $360,000 but a fair value of $480,000.Jones had equipment (ten-year life) with a book value of $240,000 and a fair value of $350,000.Parrett used the partial equity method to record its investment in Jones.On December 31,2011,Parrett had equipment with a book value of $250,000 and a fair value of $400,000.Jones had equipment with a book value of $170,000 and a fair value of $320,000.What is the consolidated balance for the Equipment account as of December 31,2011?

• A)$710,000.
• B)$580,000.
• C)$474.000.
• D)$497,000.
• E)$565,000.