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Damon, Inc., acquired 25% of Jolie Enterprises for $8,000,000 on October 1, 2018, The total fair value of Jolie's identifiable net assets was $27,000,000 on
Damon, Inc., acquired 25% of Jolie Enterprises for $8,000,000 on October 1, 2018, The total fair value of Jolie's identifiable net assets was $27,000,000 on that date, and the total book value of those net assets was $23,000,000. The difference between fair value and book value is attributed to equipment that has a remaining useful life of 4 years. During 2018 Jolie recognized net income of $2,000,000 and paid dividends of $1,200,000 ($300,000 per quarter). Jolie had a fair value of $36,000,000 as of December 31, 2018. ed Required: Assume Damon accounts for the Jolie investment under the equity method. Indicate the total effect of the Jolile investment on Damon's: 1. net income for 2018. 2. the balance in Damon's investment account on December 31. 2018 1. |Net income for 2018 2. The balance in Damon's investment account on December 31. 2018. Prey 12 of 15 :" Next > 12:31 PM 4ENG3/2019 i e e to sea
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