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Plastic Company purchased 100 percent of Spoon Company's voting common stock for $656,000 on January 1, 20X4. At that date, Spoon reported assets of $695,000
Plastic Company purchased 100 percent of Spoon Company's voting common stock for $656,000 on January 1, 20X4. At that date, Spoon reported assets of $695,000 and liabilities of $235,000. The book values and fair values of Spoon's assets were equal except or land, which had a fair value of $114,000 more than book value, and equipment, which had a fair value of $82,000 more than book value. The remaining economic life of all depreciable assets at January 1, 20X4. was five years. Spoon reported net income of $87,000 and paid dividends of $43,000 in 204. Required: Compute the amount of investment income to be reported by Plastic for 204
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