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:

Problem Worker

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Capitalist Ideology

A belief system that supports the principles of capitalism, emphasizing private ownership of the means of production, free markets, and profit maximization.

Conflict Theory

A sociological perspective that sees social life as a competition, and focuses on the distribution of resources, power, and inequality.

Bifurcated Consciousness

A psychological state where an individual's identity or perception is divided between two conflicting viewpoints or aspects of self, often related to social roles or cultural expectations.