MacHeath Inc. bought 60% of the outstanding common stock of Nomes Inc. in a purchase that resulted in the recognition of goodwill. Nomes owned a piece of land that cost $250,000 but was worth $600,000 at the date of purchase. For each of the three concepts described in the chapter, what value would be attributed to this land in a consolidated balance sheet at the date of takeover?
Economic Proportionate Parent
Unit Consolidation Company
Concept Concept Concept
A $600,000 $360,000 $600,000
B $250,000 $150,000 $600,000
C $360,000 $250,000 $600,000
D $600,000 $360,000 $460,000
Entry A
Entry B
Entry C
Entry D