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Exercise 5-4 On January 1, 2015, Porter Company purchased an 80% interest in Salem Company for $263,500. On this date, Salem Company had common
Exercise 5-4 On January 1, 2015, Porter Company purchased an 80% interest in Salem Company for $263,500. On this date, Salem Company had common stock of $210,500 and retained earnings of $128,800. An examination of Salem Company's balance sheet revealed the following comparisons between book and fair values: Book Value Fair Value Inventory $29,500 $34,700 Other current assets 50,600 55,700 Equipment 303,400 356,500 Land 198,100 198,100
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