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Equity method ( LO 1 7 - 4 ) Wilde Company acquired 3 0 % of Micki, Inc., on January 1 , 2 0 X
Equity method LO
Wilde Company acquired of Micki, Inc., on January X at a cost of $ million. At the time, Micki's balance sheet was as follows:
$ in millions
Cash $
Inventory
Fixed assets
Total assets $
Total liabilities$
Common equity
Total liabilities and equity$
Only one of Micki's separately identifiable assets and liabilities had a fair value different from book valueits fixed assets, whose fair value was $ million. The fixed assets had an expected remaining economic life at the time of years.
Micki reported net income of $ million in X and paid dividends of $ million. Ignore income taxes.
Required:
What is the amount of excess cost associated with Wilde's investment in Micki as of January X
What is the amount of income from its investment in Micki that Wilde reports in its X income statement?
What is the amount of investment in Micki that Wilde reports on its December X balance sheet?
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