Given the following two potential locations to construct an urgent care, use incremental B/C ratio to determine which location, if any, is better at an interest rate of 8% per year. Location Initial Cost, $ Annual M&O cost, $/year Annual Benefits, $/year Annual Disbenefits, $/year Site Availability, years 1,200,000 80,000 520,000 90,000 $1,900,000 75,000 580,000 140,000 10 20
A) DN Alternative
B) Site 1
C) Site 2
D) Both Sites 1 and 2

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.