Oxnard industries produces a product that requires 2.6 pounds of materials per unit. the allowance for waste and spoilage per unit is .3 pounds and .1 pounds, respectively. the purchase price is $2 per pound, but a 2% discount is usually taken. freight costs are $.10 per pound, and receiving and handling costs are $.07 per pound. the hourly wage rate is $12.00 per hour, but a raise which will average $.30 will go into effect soon. payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. standard production time is 1 hour per unit, and the allowance for rest periods and setup is .2 hours and .1 hours, respectively. the standard direct labor rate per hour is

Paar corporation bought 100 percent of kimmel, inc., on january 1, 2012. on that date, paar’s equipment (10-year life) has a book value of $420,000 but a fair value of $520,000. kimmel has equipment (10-year life) with a book value of $272,000 but a fair value of $400,000. paar uses the equity method to record its investment in kimmel. on december 31, 2014, paar has equipment with a book value of $294,000 but a fair value of $445,200. kimmel has equipment with a book value of $190,400 but a fair value of $357,000. the consolidated balance for the equipment account as of december 31, 2014 is $574,000. what would be the impact on consolidated balance for the equipment account as of december 31, 2014 if the parent had applied the initial value method rather than the equity method? the balance in the consolidated equipment account cannot be determined for the initial value method using the information given. the consolidated equipment account would have a higher reported balance. the consolidated equipment account would have a lower reported balance. no effect: the method the parent uses is for internal reporting purposes only and has no impact on consolidated totals.