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Pel Company acquires 80% of Demens Company for $500,000 on January 1, 2019 Demers reported common stock of $300,000 and retained earnings of $210,000
Pel Company acquires 80% of Demens Company for $500,000 on January 1, 2019 Demers reported common stock of $300,000 and retained earnings of $210,000 on that date Equipment was undervalued by $30,000 and buildings were undervalued by $40,000 each having a 10-year remaining fe. Any excess consideration transfered over furuslue was tribute to goodwill with an indefinita fe. Based on an annual review, goodwill has not been impaired Demers eams income and pays dividends as follows: 2019 $100,000 $120,000 $130,000 Dividends 40,000 50,000 60,000 Assume the initial value method is app How much does Pel record an income from Demers for the year ended December 31, 2020 Mate Choce O $14.000 5000 $50400 $40000 100400
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