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Assume P purchased 100% of the voting stock of S for $1,213,000 on 1/1/X6. On that date, the following information applied to S: Common Stock
Assume P purchased 100% of the voting stock of S for $1,213,000 on 1/1/X6. On that date, the following information applied to S:
Common Stock $200,000 APIC 316,000 Retained Earnings 485,000
20X6 20X7 Net Income $221,000 $357,000 Dividends Declared $68,000 $93,500
Assume the following values for S on 1/1/X6:
Fair Value Book Value
Patent 130,000 50,000
Equipment 217,000 155,000
Inventory 68,000 36,000
Bonds Pay. 200,000 170,000
In the space provided below, compute the 20X6 and 20X7 balances in P's Investment in S account. Label your answers.
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