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Question
On January 1, 2012, the Shaw Corporation purchased 70% of the Ward Company's voting stock for $1,050,000. Ward's net assets had a book value of $1,200,000; the fair value of Ward's equipment was $200,000 greater than its book value. The book value of Shaw's assets immediately after the acquisition of Ward totaled $3,750,000 while Ward's assets had a book value of $2,150,000. Assuming that Shaw used the acquisition method to prepare its consolidated balance sheet, what was total consolidated assets as of January 1, 2012?
A. $5,150,000
B. $6,200,000
C. $5,050,000
D. $4,850,000
Answer
This answer is hidden. It contains 115 characters.
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