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Assume on January 1,2018, a parent company acquired a 75% interest in a subsidiarys voting common stock. On the date of acqutsition, the fair value
Assume on January 1,2018, a parent company acquired a 75% interest in a subsidiarys voting common stock. On the date of acqutsition, the fair value of the subsidiarys. net: assets equaled their reported book values. On january 1,2020 , the subsidiary purchased a building for $345,600 The bullding has a useful ilfe of 8 years and is depreciated ona straight-line basis with no salvage value. On fanuary 1,2022 the subsidiary sold the buldding to the parent for $28a,000 The parent esaimated that the building had a six-year remaining useful life and no salvage value. The parent also uses the straight-4ine method of amortization. For the year ending December 31,202z, the parents stand-alione income (i.e, net income before recording any adjustments reloted to preconsolidation investment accounting) is $360,000, The subsidarys recorded net income is $72,000. Bosed on this information determine the balance for consolidated building (net of accumulated depreciation): Select one: a. $288.000 b. $240,000x c. $216,000 d. $345,600
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