Chapter 3 Homework 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 witha book value of $800,000 and fair value of $900,000. Both buildings have a remaining useful life of 5 years (assume straight line depreciation). A+Dec. 3, 2013 Davis had B r ) , of 5000,000+FV a. Prepare consolidation worksheet "D" to reflect the necessary adjustment for dividendsof / b. How much are consolidated dividends for 2013 1. Prepare worksheet entry "A" at December 31, 2013 (assume there is no goodwill). How much is consolidated buildings at December 31, 2013 c. d