Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Fizer Pharmaceutical paid $83 million on January 2,2024 , for 3 million shares of Carne Cosmetics common stock. The investment represents a 25% interest in

image text in transcribed
image text in transcribed
image text in transcribed
Fizer Pharmaceutical paid $83 million on January 2,2024 , for 3 million shares of Carne Cosmetics common stock. The investment represents a 25% interest in the net assets of Carne and gave Fizer the ability to exercise significant influence over Carne's operations. Fizer received dividends of $3 per share on December 21,2024 , and Carne reported net income of $80 million for the year ended December 31, 2024. The fair value of Carne's common stock at December 31, 2024, was $33.50 per 5 hare. - The book value of Carne's net assets was $224 million. - The fair value of Carne's depreciable assets exceeded their book value by $32 million. These assets had an average remaining useful life of eight years. - The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill: Required: Complete the table below and prepare the appropriate journal entries related to the investment during 2024. Record entry Clear entry Vlew general journal Complete the table below. Note: Enter your answers in millions, (i.e., 10,000,000 should be entered as 10)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions