q.30

X co, purchased 100% of Y Common stock at 1/1/2020 for $ 300,000 ,on the same date the y co stock was $ 100,000 and retained earning $120,000 , at acquisition date the net assets of y co. book value was equal to fair value except ( inventory FV more than BV of $26,000) and (land its FV more than BV10,000 ) (Building its FV more than BV by $ 14,000 )

but ( equipment its FV less than B V by $10,000) if Y CO. reported $160,000 net income for 31/12/2020 and paid $ 60,000 dividends .

Other information

1- the y inventory completely sold during 2020

2- the building useful life was 7 years , but equipment 5 years

3- there is no impairment for goodwill during 2020

if Building balance in 31/12/2020 in parent co 50,000 & in subsidiary co 60,000 what is amount of Building in consolidated balance sheet in 31/12/2020

Select one:

a. 122,000

b. 96,000

c. 98,000

d. 110,000