Question
On January 2nd 2020 The Florida Company purchased 30% of the Idaho Company for $42,000. At the time of the purchase, all of Idahos assets
On January 2nd 2020 The Florida Company purchased 30% of the Idaho Company for $42,000. At the time of the purchase, all of Idahos assets had a book value equal to their market value except for a building with a book value of $100,000 and a fair market value of $130,000. The building has a life of 10 years and no salvage value. During 2020, Idaho reported income of $10,000 and paid no dividends. What is the book value of Floridas investment in Idaho on December 31st 2020?
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a
$42,000
b
$45,000
c
$39,000
d
$44,100
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