Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.

a

$42,000

b

$45,000

c

$39,000

d

$44,100

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

8. Describe how cultural spaces are formed.

Answered: 1 week ago