The fair-value price was attributed to undervalued land


Giant acquired all of Small's common stock on January 1, 2009. Over the next few years, Giant applied the equity method of the recording investment. At the date of the original acquisition, $90,000 of the fair-value price was attributed to undervalued land while $50,000 was assigned to equipment having a 10-year life.

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Accounting Basics: The fair-value price was attributed to undervalued land
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