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Hello I would like help with solving this problem. On January 1, 2019, Hippo, Inc. acquired 40% of the outstanding common stock of Campus Co.
Hello I would like help with solving this problem.
On January 1, 2019, Hippo, Inc. acquired 40% of the outstanding common stock of Campus Co. for $276,000. This investment gave Hippo the ability to exercise significant influence over Campus. Campus' assets on that date were recorded at $1,850,000 with liabilities of $1,175,000. Any excess of cost over book value of Hippo's investment was attributed to unrecorded patents having a remaining useful life of three years. In 2019, Campus reported net income of $180,000. For 2020, Campus reported net income of $222,000. Dividends of $140,000 were paid in each of these two years. What was the reported balance of Hippo's Investment in Campus Co.at December 31, 2020? (10 points) Step by Step Solution
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