When Jolt Co acquired 75% of the common stock of Yelts Corp, Yelts owned land with a book value of $70,000 and a fair market value of $100,000.
1) What amount should have been reported for the land on a consolidated balance sheet, assuming the economic unit concept was used?
A) $70,000
B) $75,000
C) $85,000
D) $92,500
E) $100,000
2) What amount should have been reported for the land on a consolidated balance sheet, assuming the proportionate consolidation concept was used?
A) $70,000
B) $75,000
C) $85,000
D) $92,500
E) $100,000
3) What amount should have been reorted for the land on a consolidated balance sheet, assuming the parent company concept was used?
A) $70,000
B) $75,000
C) $85,000
D) $92,500
E) $100,000