1) On January 1, 2017 Preibus acquired 100 % of Spicer. This acquisition was not a bargain purchase. On the date of acquisition, Spicer's Equipment had a net book value of 1,600,000 and a fair value of 1,960,000. Preibus determined that Spicer's equipment had a remaining life of 5 years at the date of acquisition. What is the consolidation adjustment (in addition to adding the two trial balance amounts together) that must be made to the Equipment account when preparing consolidated statements for Preibus as of 12/31/2017 ?

Koch acquired 100% of O'Bannon on January 1, 2016. The transaction was not a bargain purchase. On the acquisition date, O'Bannon's Inventory had a book value of 42,258 and a fair value of 55,840. No intercompany inventory transaction occurred during 2016. Koch and O'Bannon both use the FIFO inventory cost flow assumption. O'Bannon's inventory turns over approximately 10 times per year. What adjustment to Inventory must be made when preparing Koch's consolidated financial statements as of 12/31/2016?