ackson Company acquires $100\%$ of the stock of Clark Corporation on January $1,2020,$ for $$4,100$ cash. As of that date Clark has the following trial balance:

Debit Credit

Cash $ $500$

Accounts receivable $600$

Inventory $900$

Buildings $($net$)(5$ year life$)1,600$

Equipment $($net$)(2$ year life$)1,000$

Land $900$

Accounts payable $ $400$

Long$-$term liabilities $($due $12/31/22)1,900$

Common stock $1,000$

Additional paid$-$in capital $700$

Retained earnings $1,500$

Total $ $5,500$ $ $5,500$

Net income and dividends reported by Clark for $2020$ and $2021$ follow:

$20202021$

Net income $ $120$ $ $140$

Dividends $4050$

The fair value of Clark$$s net assets that differ from their book values are listed below:

Fair Value

Buildings $ $1,200$

Equipment $1,350$

Land $1,300$

Long$-$term liabilities $1,750$

Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life.

Compute the amount of Clark$$s equipment that would be reported in a December $31,2021,$ consolidated balance sheet.

Multiple Choice

$$1,350.$

$$1,700.$

$$0.$

$$1,175.$

$$1,000.$