(6, 7) Ramtha Company bought 40% ownership in UAE company on 1-1-2019, at book value. In 2019, 2020, and 2021, UAE reported net income of $16,000, $24,000, and $ $40,000, and dividends of $30,000, $20,000, and $20,000 respectively. During the periods from 2019 to 2021 the market value of Ramtha investment in UAE stock increased by $4000 each year. The balance in Ramtha companys investment account on December 31, 2021, was $104,000

Determine the amount that Ramtha paid for it is investment in UAE stock assuming that Ramtha accounted for it is investment using:

6. Fair Value Method

7. Equity Method

(8, 9) Saud Corporation acquired 70% of Rama Corporations common stock on 1-1-2021, for $294,000 in cash. At the acquisition date, the book values and fair values of Ramas assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 30% of the total book value of Rama. The stockholders equity of the two companies at the date of the purchase are:

Saud Rama

Common stock ($10 par value) $400,000 $180,000

Additional paid-in capital 222,000 65,000

Retained Earnings 358,000 175,000

Total Stockholders Equity $980,000 $420,000

8. What amount will be assigned to the noncontrolling interest on 1-1-2021, in the consolidated balance sheet

9. Prepare the stockholders' equity section of Saud and Rama consolidated balance sheet as of 1-1, 2021.

(10-13) Sajeda Company acquired 90% of Tamara Company. On January 1, 2021 in exchange for cash. The book value of Tamara's individual assets and liabilities approximated their acquisition-date fair values. On the date of acquisition, Tamara reported the following:

Cash $ 350,000 Current Liabilities $ 120,000

Inventory 100,000

Plant Assets (net) 320,000 Common Stock 100,000

Property 500,000 Retained Earnings 1,050,000

Total Assets $1,270,000 Total Liab & Equity $ 1,270,000

During the year, Tamara Inc. reported $310,000 in net income and declared $15,000 in dividends. Sajeda Company reported $520,000 in net income and declared $25,000 in dividends. Sajeda accounts for their investment using the equity method.

12) If 10) If Sajeda company were to prepare a consolidated balance sheet on the acquisition date (January 31, 2021), what is the basic elimination entry Sajeda would use in the consolidation worksheet?

11) What is Sajeda's balance in "Investment in Tamara Inc." prior to consolidation on December 31, 2021?

12) What is the basic elimination entry Sajeda would use in the consolidation worksheet on December 31, 2021?