Question
Adora Inc. acquired one hundred percent of Alvah Co. on January 1, 2018, at a price in excess of the subsidiary's fair value. On that
Adora Inc. acquired one hundred percent of Alvah Co. on January 1, 2018, at a price in excess of the subsidiary's fair value. On that date, Adora's equipment (ten-year life) had a book value of $360,000 but a fair value of $480,000. Alvah had equipment (ten-year life) with a book value of $240,000 and a fair value of $350,000. Adora used the partial equity method to record its investment in Alvah. On December 31, 2020, Adora had equipment with a book value of $250,000 and a fair value of $400,000. Alvah had equipment with a book value of $170,000 and a fair value of $320,000. What is the consolidated balance for the Equipment account as of December 31, 2020?
A.
$387,000.
B.
$497,000.
C.
$508.000.
D.
$537,000.
E.
$570,000.
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