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On January 1, 20X5, Pink Inc. acquired 75% of the outstanding common voting shares of Salmon Corp. for $900,000 cash, resulting in an acquisition differential
On January 1, 20X5, Pink Inc. acquired 75% of the outstanding common voting shares of Salmon Corp. for $900,000 cash, resulting in an acquisition differential of $300,000. At this time, Salmon's building and land both had fair values greater than book values. The acquisition differential was allocated as follows: 30% to buildings, 50% to land, and the remainder to goodwill. The buildings had a remaining useful life of eight years. On December 31, 20X9, Pink and Salmon reported $120,000 and $90,000, respectively, for buildings on the separate entity financial statements. What amount would be reported for buildings on the consolidated financial statements at December 31, 20X9? a) $153,750 b) $176,250 c) $243,750 d) $266,250
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