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On Dec 31,2018 (A) paid JD360000 for 80% of the net assets of (B) the net asset of (B) company at this time is 450000.
On Dec 31,2018 (A) paid JD360000 for 80% of the net assets of (B) the net asset of (B) company at this time is 450000. The value of carrying assets and liabilities of (B) at purchase date equal to their fair values except for the following: Explanations Inventory Land Equipment Book value 12000 17000 28000 Fair value 10000 10000 120000 You have given the following 1. The economic life of the equipment is 5 years without salvage value. 2.75% of the inventory is sold during year 3. The goodwill is impaired by 25% 4. (B) company earned net income of 25000 and declared dividends of 5000 5. (A) company earned operating income of 100000 1:09 PM 1. The balance of investment in (B) at the end of the year is ....... (equity method ) a. JD381300 b. JD376000 C. JD360000 d. JD377400 2.The balance of the net income of (A) company is .............(cost method ) 3.The balance of goodwill at the beginning of the following year is ...... a. JD5600 b. JD6500 c. JD4200 d. JD2400
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