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ETUS Jackson Company acquires 100% of the stock of Clark Corporation on January 1, 2021 for $4,800 cash. As of that date Clark has the
ETUS Jackson Company acquires 100% of the stock of Clark Corporation on January 1, 2021 for $4,800 cash. As of that date Clark has the following trial balancer Debit Credit Cash $500 Accounts receivable 500 Inventory 900 Buildings (net) (5 year life) 1600 Equipment (net) (2 year life) 1,000 Land 900 Accounts payable $300 Long-term liabilities (due 12/31/22) 1,900 Common stock 1,000 Additional paid-in capital 800 Retained earnings 1,500 Total $5,500 55,600 Net income and dividends reported by Clark for 2020 and 2021 Follow 2021 2022 Net income 120 $140 Dividends 40 50 The fair value of Clark's net assets that differ from their book values at acquisition date are listed below Fair Value Buildings $ 1,200 Equipment 1,350 Land 1,400 Long-term abilities 1.750 Any excess of consideration transferred over tale value of net assets acquired is considered goodwar with an indefinite life Compute the amount of Clark's buildings that would be reported on a December 31, 2021 consolidated balance sheet
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