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C. Prepare worksheet entry A at December 31, 2013 (assume there is no goodwill). 1. Davis acquires 100% of Ramos on January 1, 2009. Ramos
C. Prepare worksheet entry "A" at December 31, 2013 (assume there is no goodwill). 1. Davis acquires 100% of Ramos on January 1, 2009. Ramos will be operated as a separate subsidiary. Davis will use the equity method to account for its investment in Ramos. In 2013, Davis has net income of $400,000 and pays dividends of $100,000. Ramos has net income of $200,000 and pays dividends of $75,000. At acquisition date, Davis has a building with a book value of $3,000,000 and a fair value of $4,000,000. At that date, Ramos had a building with a book value of $800,000 and fair value of $900,000. Both buildings have a remaining useful life of years (assume straight line depreciation). At Dec.31.2013 Davis had Br Bla9.ct. So a. Prepare consolidation worksheet "D" to reflect the necessary adjustment for dividends of 5600,000. Ramos nad BV Bldg, Chapter 3 Homework 2,60 10 b. How much are consolidated dividends for 2013 d. How much is consolidated buildings at December 31, 2013
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