Business, 24.06.2021 19:40 jacks0292

On January 1, 2009, Wilton Company acquired all of Sirius Company's common shares, for $365,000 cash. On that date, Sirius's balance sheet appeared as follows: The fair values of all of Sirius's assets and liabilities were equal to their book values except for inventory that had a fair value of $85,000, land that had a fair value of $60,000, and buildings and equipment that had a fair value of $250,000. Buildings and equipment have a remaining useful life of 10 years with zero salvage value. Wilton Company decided to employ push-down accounting for the acquisition. Subsequent to the combination, Sirius continued to operate as a separate company. Based on the preceding information, what amount of differential will arise in the consolidation process? a. $0
b. $5,000
c. $15,000
d. $65,000

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On January 1, 2009, Wilton Company acquired all of Sirius Company's common shares, for $365,000 cash...

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