Treadway Corporation acquires Hooker, Inc., on January 1, 2010. The parent pays more for it than the fair value ofthe subsidiary’s net assets. On that date, Treadway has equipment with a book value of $420,000 and a fair value of $530,000. Hooker has equipment with a book value of $330,000 and a fair value of $390,000. Hooker is going to use push-down accounting. Immediately after the acqui¬ sition, what amounts in the Equipment account appear on Hooker’s separate balance sheet and on the consolidated balance sheet?

a. $330,000 and $750,000. LO1

b. $330,000 and $860,000.

c. $390,000 and $810,000.

d. $390,000 and $920,000.