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(Solved): Bennybo corp purchased 75%. Of Marv inc on January 1, 2019 for a cash payment of $90,000. At the tim ...



Bennybo corp purchased 75%. Of Marv inc on January 1, 2019 for a cash payment of $90,000. At the time of the business combination marv inc had common shares and retained earnings of $20,000 and $65,000 respectively. At the date of acquisiton marv had net assets with fair values that were equal to their carrying values and tax base except for a specialized piece of equiptment which had a fair value of $50,000 and a carrying value of $24,000. The tax base on the specialized piece of equiptment was $18,000 at the date of acquisition. It was determined that the specialized piece of equiptment had a remaining useful life of 10 years. Both companies use the straight line method for amortizing equiptment and pay tax at a rate of 30%. Assume that Marv has appropriately recorded deferred tax on its separate entity statements for any temporary tax difference related to the specialized piece of equiptment 2)what is the balance of the specialized equipment on the consolidated balance sheet at January 1, 2019 A)26,000 B)42,000 C)24,000 D)50,000



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