Question 2. ABC purchased 30% of common shares of XYZ Co for $438,000. Ruthe smo, The following fair value information was provided. Carrying Fair Value Non depreciable assets Depreclable assets Total assets Liabilities 550,000.00 60,000.00 1,310,000.00 110,000.00 550,000.00 880,000.00 1,430,000.00 110,000.00 Depreciable assets are deprecilated straight-line over ten years Income before operations Discontinued operations (net of tax) Net income before tax Dividends declared and paid 200,000.00 50,000.00 150,000.00 110,000.00 How is the purchase recorded? What are the journal entries for the year? If shares are now worth $115 due to market deterioration what does this mean to the investor? a. b. c. loi 400 Question 2. ABC purchased 30% of common shares of XYZ Co for $438,000. Ruthe smo, The following fair value information was provided. Carrying Fair Value Non depreciable assets Depreclable assets Total assets Liabilities 550,000.00 60,000.00 1,310,000.00 110,000.00 550,000.00 880,000.00 1,430,000.00 110,000.00 Depreciable assets are deprecilated straight-line over ten years Income before operations Discontinued operations (net of tax) Net income before tax Dividends declared and paid 200,000.00 50,000.00 150,000.00 110,000.00 How is the purchase recorded? What are the journal entries for the year? If shares are now worth $115 due to market deterioration what does this mean to the investor? a. b. c. loi 400