Hanson Co Acquired All of the Common Stock of Roberts Inc

question 86

Essay

Hanson Co. acquired all of the common stock of Roberts Inc. on January 1, 2010, 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, 2011, 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, 2011?

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Definitions:

Civil Action

A lawsuit brought to court by one individual or entity against another to protect a civil right or to obtain compensation for a civil wrong.

Tort Of Negligence

Refers to a civil wrong that arises from an act or failure to act, resulting in injury or harm, stemming from a breach of duty of care owed to others.

Tort Of Trespass

A legal wrong that involves the direct, intentional or negligent unauthorized entry onto another person's property.

Neighbour's Property

Issues and laws concerning the rights and responsibilities between adjoining landowners, including boundary disputes and nuisances.