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    Advanced Accounting - Jolt Co. and Yelts Corp.

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    When Jolt Co. acquired 75% of the common stock of Yelts Corp. Yelts owned land with a book value of $70,000 and a fair market value of $100,000.

    What amount should have been reported for the land on a consolidated balance sheet, assuming the Economic Unit Concept was used?

    A $70,000
    B $75,000
    C $85,000
    D $92,500
    E $100,000

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    Solution Summary

    The question concerning Jolt Co. and Yelts Corp. solves for the value of land on a consolidated balance sheet.