Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On July 1, 2020, GREEN Company acquired 20% of the outstanding ordinary shares of another entity for 5,000,000. The carrying amount of the acquired shares

On July 1, 2020, GREEN Company acquired 20% of the outstanding ordinary shares of another entity for 5,000,000. The carrying amount of the acquired shares was 4,000,000. The excess of cost over the carrying amount was attributable to an identifiable intangible asset which was undervalued on the investees statement of financial position and which had a remaining useful life of 5 years. The investee reported net income of 6,000,000 for 2020 and paid cash dividends of 1,000,000 on ordinary shares and issued 10% stock dividend on December 31, 2020. What amount of investment income should be reported by GREEN for 2020?

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

Internal Auditing An Integrated Approach

Authors: Richard Cascarino

1st Edition

0702166693, 978-0702166693

More Books

Students also viewed these Accounting questions