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Mathandler1 · Jul 27, 2007, 10:12 AM

I need some confirmation here... Please and Thanks:
Treadway Corporation purchases Hooker, Inc. on January 1, 2001. The Parent pays more than the fair market value of the subsidiary’s net assets. On that date, Treadway has equipment with a book value of $420,000 and a fair market value of $530,000. Hooker has equipment with a book value of $330,000 and a fair market value of $390,000. Hooker is going to use push-down accounting. Immediately after the acquisition, what Equipment account appears on Hooker’s separate balance sheet and on the consolidated balance sheet?

a $330,000 and $750,000
b $330,000 and $860,000
c $390,000 and $810,000
d $390,000 and $920,000
e $330,000 and $420,000

The answer I turned in was (c). Is there someone out there that can confirm that I am right or not in giving this as my answer. And if not what is the correct answer. Thanks!

Mathandler1 · Jul 27, 2007, 10:12 AM

The answer I turned in was (c). Is there someone out there that can confirm that I am right or not in giving this as my answer. And if not what is the correct answer. Thanks!

Mathandler1 · Jul 28, 2007, 10:00 AM

Wow! I cannot believe my eyes that no one is out there that does not have his/her own thoughts regarding this question. I figure that there would be more than zero out there that would be respond with confirmation of either that I was correct or I was totally off the track with my answer. I really am interested in knowing if someone else has come up with the same asnswer as I did or with a different one. Thanks!

J_9 · Jul 28, 2007, 10:03 AM

Jeeze dude, give the people TIME to answer. The people who are here are here on a voluntary basis and may not be online at this moment, considering it is a weekend they may be doing things with friends and family.

Chill out. While we do not do homework for our posters it is clear that you did do yours and you showed effort. Someone will help you when they get online.