Question
On January 1, 2019, Poxx acquired 100% of Soxxs outstanding common stock. For 2019, Soxx reported $200,000 of net income and declared dividends of $150,000.
On January 1, 2019, Poxx acquired 100% of Soxx’s outstanding common stock. For 2019, Soxx reported $200,000 of net income and declared dividends of $150,000. The amortization of cost in excess of book value for 2019 was $20,000. Poxx opted to use
1). The equity method and
2). Non-push-down accounting.
What are Soxx’s true earnings for 2019 from Poxx’s perspective?
Step by Step Solution
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Step: 1
To record equity method income Investment in Soxx 200000 Investment Income 200000 T...
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Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
3rd edition
1119372933, 978-1119372936
