REFERENCE: Ref.03_08 Goehler,Inc.acquires All of the Voting Stock of Kenneth,Inc.on January 4,2009,at

question 47

Multiple Choice

REFERENCE: Ref.03_08
Goehler,Inc.acquires all of the voting stock of Kenneth,Inc.on January 4,2009,at a price in excess of Kenneth's fair value.On that date,Kenneth has equipment with a book value of $90,000 and a fair value of $120,000 (10-year remaining life) .Goehler has equipment with a book value of $800,000 and a fair value of $1,200,000 (10-year remaining life) .On December 31,2010,Goehler has equipment with a book value of $975,000 but a fair value of $1,350,000 and Kenneth has equipment with a book value of $105,000 but a fair value of $125,000.
-If Goehler applies the partial equity method in accounting for Kenneth,what is the consolidated balance for the Equipment account as of December 31,2010?

• A)$1,080,000.
• B)$1,104,000.
• C)$1,100,000.
• D)$1,468,000.
• E)$1,475,000.

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