Paar corporation bought 100 percent of kimmel, inc., on january 1, 2012. on that date, paar's equipment (10-year life) has a book value of $420,000 but a fair value of $520,000. kimmel has equipment (10-year life) with a book value of $272,000 but a fair value of $400,000. paar uses the equity method to record its investment in kimmel. on december 31, 2014, paar has equipment with a book value of $294,000 but a fair value of $445,200. kimmel has equipment with a book value of $190,400 but a fair value of $357,000. what is the consolidated balance for the equipment account as of december 31, 2014? $612,600.$802,200.$574,000.$484,400 .

Option (C) is correct.

Explanation:

Given that,

On January 1, 2012

Paar's equipment (10-year life) has a book value(A) = $420,000

Fair value(B) = $520,000

and

Kimmel has equipment (10-year life) with a book value(C) = $272,000

Fair value(D) = $400,000

On December 31, 2014

Paar has equipment with a book value(E) = $294,000

Fair value(F) = $445,200

and

Kimmel has equipment (10-year life) with a book value(G) = $190,400

Fair value(H) = $357,000

Goodwill recognized by Paar corporation on Jan 1, 2012 = $400,000 - $272,000

= $128,000

Goodwill Amortized =

                                 = $38,400

Consolidated balance for the Equipment account as of December 31, 2014:

= E + G + Goodwill recognized by Paar corporation - Goodwill Amortized

= $294,000 + $190,400 + $128,000 - $38,400

= $574,000

answer; marketing resource management;

answer; monopolistic competition;