Utah Inc Acquired All of the Outstanding Common Stock of Trimmer

Essay

Utah Inc. acquired all of the outstanding common stock of Trimmer Corp. on January 1, 2009. At that date, Trimmer owned only three assets and had no liabilities: $\begin{array}{lrr}&\text { Book } & \text { Fair } \\&\text { Value } & \text { Value }\\\text { Inventory } & \$ 36,000 & \$ 48,000 \\\text { Equipment (5-year life) } & 84,000 & 60,000 \\\text { Building (10-year life) } & 120,000 & 180,000\end{array}$
-If Utah paid $300,000 in cash for Trimmer, what allocation should have been assigned to the subsidiary's Building account and its Equipment account in a December 31, 2011 consolidation?