REFERENCE: Ref.03_08 Goehler,Inc.acquires All of the Voting Stock of Kenneth,Inc.on January 4,2009,at

Multiple Choice

REFERENCE: Ref.03_08
Goehler,Inc.acquires all of the voting stock of Kenneth,Inc.on January 4,2009,at a price in excess of Kenneth's fair value.On that date,Kenneth has equipment with a book value of $90,000 and a fair value of $120,000 (10-year remaining life) .Goehler has equipment with a book value of $800,000 and a fair value of $1,200,000 (10-year remaining life) .On December 31,2010,Goehler has equipment with a book value of $975,000 but a fair value of $1,350,000 and Kenneth has equipment with a book value of $105,000 but a fair value of $125,000.
-If Goehler applies the initial value method in accounting for Kenneth,what is the consolidated balance for the Equipment account as of December 31,2010?

A) $1,080,000.
B) $1,104,000.
C) $1,100,000.
D) $1,468,000.
E) $1,475,000.