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how do you solve the attached question? On January I. 2021. Johnsonville Enterprises. Inc.. acquired 80 o' Stayer Company's outstanding common shares in exchange for
how do you solve the attached question?
On January I. 2021. Johnsonville Enterprises. Inc.. acquired 80 o' Stayer Company's outstanding common shares in exchange for S3,OOO.OOO cash. The price paid the 80 percent ownership interest was proportionately representative o' the fair value o' Of Stayer's shares At acquisition date, Stayer's books showed assets Of and nabilities Of Sl.600000. The recorded assets and liabihties had fair values equ" to the" individual book values except that a building remaining Ide) book value of $195,000 had an apptmsed fair value Of $345,000. StayerS showed a SVS.SOO carrying amount 'Ot this buJdin9 the end o' 2021 Also. at acquisition dote Staver possessed unrecorded technology ptocesses (tero book value) with on estimated fair value o' S'.OOOOOO and a 20-year remaining Fot 202'. Johnsonville reported net 'ncome of 5650.000 (belote recognition o' Stayer's Income). and Stayer separately reported earnings o' 950.000 During 2021. Johnsonville declared dividends o' $85,000 and Stayer declared $50,000 in dividends, Compute the amounts thot Johnsonville Enterprises should report in its December 31, 2021. consolidated financial Statements for the following Items; Answer not complete.
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