Banner Corporation acquired all of Dwyer Company's common stock at underlying book value. At the acquisition date,

Question:

Banner Corporation acquired all of Dwyer Company's common stock at underlying book value. At the acquisition date, the book values and fair values of all of Dwyer's assets and liabilities were equal. Banner uses the equity method in accounting for its investment. Balance sheet information provided by the companies at December 31, 20X8, is as follows: Intercompany Loans $200,000 $200,000 a. b. c. $0 d. $0 Profits $0 $500,000 $0 $500,000