Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On 1/1/Y1, Golden Co. acquired 80% of Silver Co. for $400,000. At that time, Silver Co. reported contributed capital of 350,000 and retained earnings of
On 1/1/Y1, Golden Co. acquired 80% of Silver Co. for $400,000. At that time, Silver Co. reported contributed capital of 350,000 and retained earnings of 80,000. The difference between purchase price and the book value of the net assets acquired is arose from an equipment being depreciated over a remaining life of 5 years. Golden adopted the equity method to account for its investment in Silver. During year 1, Silver had net income of $30,000 and paid a $10,000 dividend. And Golden had a net income, exclusive of its income from Silver, of $50,000 and paid a $25,000 dividend. What amount will Golden report as dividends declared and paid in its Year 1 UOG-Advanced Accounting consolidated statement of retained earnings? A. $10,000 B. $25,000 C. $33,000 D. $35,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started