TB MC Qu. 04-24 Scott Co. acquired 70% of Gregg Co. for... Scott Co. acquired...
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TB MC Qu. 04-24 Scott Co. acquired 70% of Gregg Co. for... Scott Co. acquired 70% of Gregg Co. for $525,000 on December 31, 2019 when Gregg's book value was $580,000. The Gregg stock was not actively traded. On the date of acquisition, Gregg had equipment (with a ten-year life) that was undervalued in the financial records by $170,000. One year later, the two companies provided the selected amounts shown below. Additionally, no dividends have been paid. Scott Co. Gregg Co. Book Book Fair Value Value Value Current assets $912,000 $430,000 $458,000 Equipment 371,000 290,000 450,000 Buildings 584,000 210,000 210,000 Liabilities (564,000)(238,000) (238,000) Revenues (1,320,000) (570,000) Expenses 740,000 410,000 Investment income Not Given What is the consolidated balance of the Equipment account at December 31, 2020? Multiple Choice $797,000. O $821,000. $661,000. O O $831,000. O $814,000
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