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Required information On January 2, 20X8, Polaris Company acquired a 100% interest in the capital stock of Ski Company for $3,100,000. Any excess cost over

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Required information On January 2, 20X8, Polaris Company acquired a 100% interest in the capital stock of Ski Company for $3,100,000. Any excess cost over book value is attributable to a patent with a 10-year remaining life. At the date of acquisition, Ski's balance sheet contained the following information Foreign Currenc Units (FCU) 40,000 150,000 500,000 1,500,0ee 2,190,000 200,000 600,000 1,390,000 2,190,009 Cash Receivables (net) Inventories (FIFO) Plant and Equipment (net) Total Accounts Payable Copital Stock Retained Earnings Total Ski's income statement for 20X8 is as follows: Foreign Curre Units (FCu) Revenues from Sales Cost of Goods Sold Gross Margin Operating Expenses (exclusive of depreciation) Depreciation Expense Income Taxes Net Income 1,010,000 (596,000) 420,000 (120,000) (200,000) 40,00) 60,000 The balance sheet of Ski at December 31, 20X8, is as follows: Foreign Currenc Units (FCu) 18e,000 21e,000 528,080 1,300,00e 2,210,e00 Cash Receivables (net) Inventories (FIFO) Plant and Equipment (net) Total Accounts Payable Capital Stock Retained Earnings 188,000 600,000 1.436,800 Required information On January 2, 20X8, Polaris Company acquired a 100% interest in the capital stock of Ski Company for $3,100,000. Any excess cost over book value is attributable to a patent with a 10-year remaining life. At the date of acquisition, Ski's balance sheet contained the following information Foreign Currenc Units (FCU) 40,000 150,000 500,000 1,500,0ee 2,190,000 200,000 600,000 1,390,000 2,190,009 Cash Receivables (net) Inventories (FIFO) Plant and Equipment (net) Total Accounts Payable Copital Stock Retained Earnings Total Ski's income statement for 20X8 is as follows: Foreign Curre Units (FCu) Revenues from Sales Cost of Goods Sold Gross Margin Operating Expenses (exclusive of depreciation) Depreciation Expense Income Taxes Net Income 1,010,000 (596,000) 420,000 (120,000) (200,000) 40,00) 60,000 The balance sheet of Ski at December 31, 20X8, is as follows: Foreign Currenc Units (FCu) 18e,000 21e,000 528,080 1,300,00e 2,210,e00 Cash Receivables (net) Inventories (FIFO) Plant and Equipment (net) Total Accounts Payable Capital Stock Retained Earnings 188,000 600,000 1.436,800

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