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I will try this again, for the 3rd time. I have part A correct and some of part B correct, but I am missing some
I will try this again, for the 3rd time. I have part A correct and some of part B correct, but I am missing some entries and some of my calculations are incorrect. Can anyone help me out with where I went wrong?
Problem 5-22 (LO 5-7) On January 1, 2014, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $810,000 in cash and stock options. At the acquisition date, NetSpeed had common stock of $800,000 and Retained Earnings of $40,000. The acquisition-date fair value of the 10 percent noncontrolling interest was $90,000. QuickPort attributed the $60,000 excess of NetSpeed's fair value over book value to a database with a 5-year remaining life During the next two years, NetSpeed reported the following: Dividends $ 8,000 8,000 Income 2015 115,000 On July 1, 2014, QuickPort sold communication equipment to NetSpeed for $42,000. The equipment originally cost $48,000 and had accumulated depreciation of $9,000 and an estimated remaining life of three years at the date of the intra-entity transfer. a. Compute the equity method balance in QuickPort's Investment in NetSpeed, Inc., account as of December 31, 2015 948,000 Investment in NetSpeed, Inc., 12/31/15 948,000Step by Step Solution
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