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On January 1, 2014, Brendan, Inc., reports net assets of $880,250 although equipment (with a four-year life) having a book value of $449,000 is worth
On January 1, 2014, Brendan, Inc., reports net assets of $880,250 although equipment (with a four-year life) having a book value of $449,000 is worth $521,250 and an unrecorded patent is valued at $47,000. Hope Corporation pays $799,600 on that date for an 80 percent ownership in Brendan. If the patent is to be written off over a 10-year period, at what amount should it be reported on consolidated statements at December 31, 2015? |
$42,300.
$33,840.
$30,080.
$37,600.
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