1. Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2015. On that date, Paars equipment (10-year life) has a book value of $430,000 but a fair value of $587,000. Kimmel has equipment (10-year life) with a book value of $249,000 but a fair value of $402,000. Paar uses the equity method to record its investment in Kimmel. On December 31, 2017, Paar has equipment with a book value of $301,000 but a fair value of $482,500. Kimmel has equipment with a book value of $174,300 but a fair value of $368,000. What is the consolidated balance for the Equipment account as of December 31, 2017?

a. $475,300.

b. $582,400.

c. $628,300.

d.$850,500.

2. Which of the following is not an example of an intangible asset?

a. Broken equipment

b. Lease agreement.

c. Database.

d. Trademark.

e. Customer list.