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On January 1 , 2 0 2 2 , Palmcroft Company acquired 1 0 0 percent of the outstanding voting shares of Salt River, Incorporated,
On January Palmcroft Company acquired percent of the outstanding voting shares of Salt River, Incorporated,
for $ cash. At January Salt River's net assets had a total carrying amount of $ Equipment eight
year remaining life was undervalued on Salt River's financial records by $ Any remaining excess fair over book
value was attributed to a database developed by Salt River fouryear remaining life but not recorded on its books.
Palmcroft applies the equity method to account for its investment in Salt River. Each year since the acquisition, Salt River
has declared a $ dividend. Salt River recorded net income of $ in and $ in
Selected account balances from the two companies' individual records were as follows:
What is consolidated net income for Palmcroft and Salt River for
Multiple Choice
$
$
$
$
What is Palmcrofts consolidated retained earnings balance at December
Multiple Choice
$
$
$
$
On its December consolidated balance sheet, what amount should Palmcroft report for Salt Rivers database?
Multiple Choice
$
$
$
$
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