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answer was 38,720 but I don't get how, please show help with steps : On January 1, 2014, Brendan, Inc., reports net assets of $896,400
answer was 38,720 but I don't get how, please show help with steps :
On January 1, 2014, Brendan, Inc., reports net assets of $896,400 although equipment (with a four-year life) having a book value of $497,000 is worth $560,000 and an unrecorded patent is valued at $48,400. Hope Corporation pays $806,240 on that date for an 80 percent ownership in Brendan. If the patent is to be written off over a 10-year period, at what amount should it be reported on consolidated statements at December 31, 2015?
$38,720.
$43,560.
$30,976.
$34,848
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