Problem
Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2015. On that date, Paar's equipment (10-year life) has a book value of $470,000 but a fair value of $648,000. Kimmel has equipment (10-year life) with a book value of $259,000 but a fair value of $437,000. Paar uses the equity method to record its investment in Kimmel. On December 31, 2017, Paar has equipment with a book value of $329,000 but a fair value of $533,500. Kimmel has equipment with a book value of $181,300 but a fair value of $403,400. What is the consolidated balance for the Equipment account as of December 31, 2017?