Perch Co acquired 80 of the common stock of Float Corp for 1

Perch Co. acquired 80% of the common stock of Float Corp. for $1,500,000. The fair value of Roar\'s net assets was $1,850,000, and the book value was $1,500,000. The non-controlling interest shares of Float Corp. are not actively traded. What is the dollar amount of Float Corp.\'s net assets that would be represented in a consolidated balance sheet prepared at the date of acquisition? O $1.480,000. O $1,850,000. O $1.200,000. O $1,600,000. O $1,780,000.

Solution

Answer = $ 18, 50,000.

On date of aquisition the assets should be recorded at fair value of the asset. So here we have to record net assets at fair value of $18,50,000 on date of acquisition.