Goehler, Inc. acquires all of the voting stock of Kenneth, Inc. on January 4, 2010, at an amount in excess of Kenneth's fair value. On that date, Kenneth has equipment with a book value of $90,000 and a fair value of $120,000 (10-year remaining life). Goehler has equipment with a book value of $800,000 and a fair value of $1,200,000 (10-year remaining life). On December 31, 2011, Goehler has equipment with a book value of $975,000 but a fair value of $1,350,000 and Kenneth has equipment with a book value of $105,000 but a fair value of $125,000. 23. If Goehler applies the equity method in accounting for Kenneth, what is the consolidated balance for the Equipment account as of December 31, 2011? 1. On January 1, Chester Inc. acquires 100% of Festus Corp.'s outstanding common stock by issuing 100,000 shares of Chester's 51 par value common voting stock. In addition, Chester paid $1,800,000 in cash. Chester also incurred direct combination costs of $350,000 and stock issuance costs of $650,000 On January 1, Chester's voting common stock had a market value of $38.50 per share. Festus' voting common shares were selling for $12.50 per share. Festus' balances on the acquisition date, just prior 10 acquisition are listed below. BV. F.V. Cash S 530,000 $ $30,000 Receivables 610,000 650,000 Inventory 400,000 400,000 Land 600,000 700,000 Building (net) 500,000 580,000 Equipment (net) 375,000 300,000 Payables (280,000) (280,000) Common Stock, Si par value (1,800,000) (2,250,000) Paid-In Capital (660,000) RE(January 1) (275,000) Required: A. Using the Acquisition Method, compute the value of Chester's investment account on the date of acquisition, January 1