Question
On 1/1/2015, Choco paid $150,000 to acquire 40% of the voting common stock of Cookie. Following is the financial information about Cookie. Book value of
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On 1/1/2015, Choco paid $150,000 to acquire 40% of the voting common stock of Cookie. Following is the financial information about Cookie.
| Book value of assets | $450,000 |
| Book value of liabilities | $125,000 |
| Net income (2015) Net income (2016) | $80,000 $100,000 |
| Dividends (2015) Dividends (2016) | $40,000 $45,000 |
| Fair market value of investment 1/1/2015 Fair market value of investment 12/31/2016 | $160,000 $180,000 |
Cookie has a patent with book value of $5,000 but actually $25,000 with 8 years remaining life.\
What is the balance of the investment account in Cookie at 12/31/2016?
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Audit And Assurance Q And A 2019
Authors: ACA Simplified
1st Edition
1792949863, 978-1792949869
