Question
Choco Co. acquired 60% of Allie Co. (Allie has total of 100,000 shares outstanding and Choco acquired 60,000 shares) for $540,000 ( $9/share ) on
Choco Co. acquired 60% of Allie Co. (Allie has total of 100,000 shares outstanding and Choco acquired 60,000 shares) for $540,000 ($9/share) on December 31, 2018. The market value of Allie's stock was $9/share. Choco uses equity method to report its investment in Allie.
During 2019, Allie earned net income of $180,000 and paid dividends of $22,000.
Calculate goodwill and allocated calculated goodwill between controlling and noncontrolling interest (NCI) on 12/31/2018 (acquisition date)
Calculate annual excess amortization of equipment and building?
Calculate "investment in Allie" balance on 12/31/2019.
Calculate "equity in Allie's income" balance on 12/31/2019.
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