Rank Corporation acquired 60 percent of Fresh Company 's stock on December 31, 20X4 In preparing the consolidated financial statements at December 31, 20X4, goodwill of $240,000 was reported The goodwill is attributable to Rank 's purchase of Fresh shares, and the parent company approach was used i...

a 240000 computed in the same mann ...

Rank Corporation acquired 60 percent of Fresh Company's stock on December 31, 20X4. In preparing the consolidated

Question:

Rank acquired 60 percent of Fresh Company's stock on December 31, 20X4. In preparing the consolidated at December 31, 20X4, of $240,000 was reported. The is attributable to Rank's purchase of Fresh shares, and the parent company approach was used in determining the amount of reported.

Required
Determine the amount of to be reported under each of the following consolidation alternatives:
a. Proprietary theory.
b. Entity theory.
c. Current accounting practice.

Goodwill
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