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12. At the beginning of 2019 SBC Corp purchased 30% of Sky Tech Inc. for $45 million. At the time of purchase, the carrying value
12. At the beginning of 2019 SBC Corp purchased 30% of Sky Tech Inc. for $45 million. At the time of purchase, the carrying value of Sky Tech's net assets was $75 million. The fair value of Sky Tech's depreciable assets was $15 million in excess of their book value and had a remaining useful life of 5 years. For the year, Sky Tech reported net income of $75 million and declared and paid $15 million in dividends. The market value of Sky Tech's outstanding stock at December 31, 2019 was $200 million. a Prepare all appropriate journal entries related to this investment for 2019. b. What amount should SBC report as income from its investment in Sky Tech for the year ended 12/31/192 c. What amount should SBC report in its balance sheet as its investment in Sky Tech? d. What should SBC report in its statement of cash flows regarding its investment in Sky Tech? Operating activities: Investing activities
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