ACC_690

Module 6-2

Quiz

Question #13

Red Co. acquired 100% of green, Inc. on January 1, 2012. On that date, Green had inventory with a book value of $42,000 and a fair book value of $52,000. This inventory had not yet been sold at December 31,2012. Also, on the date of acquisition, Green had a building with a book value of $200,000 and a fair value of $390,000. Green had equipment with a book value of $350,000 and a fair value of $280,000. The building had a 10 year remaining useful life and equipment had a 5 year remaining useful life. How much total expense with be in the consolidated financial statements for the year ended December 31,2012 related to the acquisition allocations of Green?

0 $ 5,000

0 $ 43,000

0 $ 33,000

0 0

0 $ 15,000