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Patty Corporation acquired 100 percent of Oliver Company's outstanding common stock on January 1, 2021 for $639,000 in cash. Oliver reported net assets with
Patty Corporation acquired 100 percent of Oliver Company's outstanding common stock on January 1, 2021 for $639,000 in cash. Oliver reported net assets with a carrying amount of $374,000 at that time. Some of Oliver's assets either were unrecorded (having been internally developed) or had fair values that differed from book values as follows: Book Fair Values Values Trademarks (indefinite life) $ 101.50 $249,50 0 0 Customer relationships (5-year remaining life) 0 91,200 Equipment (10-year remaining life) 364,00 0 323.80 0 Any goodwill is considered to have an indefinite life with no impairment charges during the year. Assume Patty applies the equity method to account for its investment in Oliver. On December 31, 2021, Patty has equipment with a book value of $1,014,000 and Oliver has equipment with a book value of $292,000. What is the consolidated balance for the Equipment account as of December 31, 2021? $1,269,820 $1,342,180 $1,274,620 $1,306,000
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