Question
Leo Inc. acquired 100% of the stock of Virgo Co on Jan 1, 2020. At the time of the purchase, Virgo Co. had a patent
Leo Inc. acquired 100% of the stock of Virgo Co on Jan 1, 2020. At the time of the purchase, Virgo Co. had a patent with a book value of $70,000 and a fair value of $370,000 and a remaining useful life of 10 years as of Jan 1, 2020
The following chart shows the Patent balances on the separate balance sheets of Leo and Virgo
Leo Virgo Dec. 31, 2020 Patent balance 0 64,000 Dec. 31, 2021 Patent balance 110,000 58,000
Find the balance on the consolidated balance sheet
1. Dec 31, 2020 balance in Patents 2. Dec 31, 2021 balance in Patents
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Cost Accounting Foundations and Evolutions
Authors: Michael R. Kinney, Cecily A. Raiborn
9th edition
9781285401072, 1111971722, 1285401077, 978-1111971724
