Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer the wuestion below and do the general journal Fizer Pharmaceutical paid $85 million on January 2, 2024, for 4 million shares of Carne

Please answer the wuestion below and do the general journal
image text in transcribed

Fizer Pharmaceutical paid $85 million on January 2, 2024, for 4 million shares of Carne Cosmetics common stock. The investment represents a 30% interest in the net assets of Carne and gave Fizer the ability to exercise significant influence over Carne's operations. Fizer received dividends Of $2 per share on December 21, 2024, and Carne reported net income Of $50 million for the year ended December 31, 2024. The fair value Of Carnes common stock at December 31, 2024, was $26.50 per share. The book value Of Carme's net assets was $200 million. The fair value of Carne's depreciable assets exceeded their book value by $40 million. These assets had an average remaining useful life of twelve years. The remainder of the excess ofthe cost of the investment over the book value of net assets purchased was attributable to goodwill. Required: Complete the table below and prepare the appropriate journal entries related to the investment during 2024. Complete this question by entering your answers in the tabs below. General Calculation Journal Complete the table below. Note: Enter your answers in millions, (i.e., 10,000,000 should be entered as 10). in millions) Purchase Price Fair Value Carnes assets Book Value Carnets assets preciation adjustment: Investment revenue Investee Net Assets Ownership Interest Years Calculation Net Assets Difference Purchased Adjustment General Journal Attributable to:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions