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my question is how do i calulate the inventorry Problem 1 anuary 1, 2013, Carpenter acquired 40 percent ownership in Cudd for $1,140,000. This acquisition
my question is how do i calulate the inventorry
Problem 1 anuary 1, 2013, Carpenter acquired 40 percent ownership in Cudd for $1,140,000. This acquisition arpenter the ability to exercise significant influence over the investee. The book value of the ured shares was $800,000. Any excess cost over the book value was assigned to a Dunding WING undervalued on its balance sheet. The building has a remaining useful life of 10 years. For the year chued December 31, 2013, Cudd reported net income of $240,000 and declared cash dividends or 0,000. During 2013, Cudd sold inventory to Carpenter for $100,000 which cost Cudd $70,000. 20 percent of this inventory remained in carpenter's inventory at year end. During 2014 Cudd sold inventory to Carpenter for $120,000 which cost Cudd $96,000, of which 40 percent was held by Carpenter at year end. For the year ended December 31, 2014, Cudd reported net income of $250,000 and declared dividends of$30,000. Required: Prepare a schedule to show what Carpenter should report as its investment balance in Cudd as of December 31, 2014 Step by Step Solution
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