P Company acquired a 100% interest in S Company. On the date of acquisition the fair value

Question:

P Company acquired a 100% interest in S Company. On the date of acquisition the fair value of the assets and liabilities of S Company was equal to their book value except for land that had a fair value of $1,500,000 and a book value of $300,000. At what amount should the land of S Company be included in the consolidated At what amount should the land of S Company be included in the consolidated if P Company acquired an 80% interest in S Company rather than a 100% interest?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...