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On January 1, 20x1. Como Company purchased 45% of the outstanding common shares of the Lite Company for $200,000. The net assets of Lite Company
On January 1, 20x1. Como Company purchased 45% of the outstanding common shares of the Lite Company for $200,000. The net assets of Lite Company totaled $400,000. The inventory had a book value of $100,000 and a fair value of$120.000. Excess cost attributable to inventory is written off in 20x1. During 20X'I, Lite Company earned $200,000 and declared a dividend of $40,000 for the year. The carrying value of the Lite investment at the end of 20x1 is: Multiple Choice 0 $263,000 $200,000 0 0 $222,000 0 $290,000
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