CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

QuietKey acquired 100 percent of Lansing Corporation. At the acquisition date, QuietKey's machinery had a book and market value of $240,000 and $350,000, respectively, while Lansing's machinery had a book and market value of $100,000 and $125,000, respectively. Under the acquisition method, what amount is presented on the consolidated balance sheet for the machinery account at the acquisition date?
A. $475,000
B. $240,000
C. $365,000
Explanation: 240,000 + 125,000.

User Contributed Comments 4

User Comment
phadrian acquiring company at book value, target company at fair value
richmondo Yes - fell for that one ;(
sg2006 me too!
LoCo83 Ugh, me three
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