Can someone please help me with the following question. I am not really sure even how to start.
One company purchased all of the common stock of another company on January 1, 2005, paying slightly more than the fair value of acquired company's net assets. At that time, the acquired company had buildings with a twenty-year useful life, a book value of $600,000, and a fair value of $696,000. On December 31, 2006, the acquired company had buildings with a book value of $570,000 and a fair value of $648,000. On that date, the acquirer company had buildings with a book value of $1,878,000 and a fair value of $2,160,000.
-What amount should be shown for buildings on the consolidated balance sheet dated December 31,2006?
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