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Required information Use the following information to answer problems 3-10 to 3-12 (Algo) (LO 3-3a) On January 1, 2022. Paimcroft Company acquired too percent of
Required information Use the following information to answer problems 3-10 to 3-12 (Algo) (LO 3-3a) On January 1, 2022. Paimcroft Company acquired too percent of the outstanding voting shares of Salt River, Incorporated, for $786,000 cash. At January 1,2022 , Salt River's net assets had a total carrying amount of $550,200. Equipment (eightyear remaining life) was undervalued on Salt River's financial records by $108,000. Any remaining excess fair over book value was attributed to a database developed by Salt River (four-year remaining life), but not recorded on its books. Palmcroft applies the equity method to account for its investment in Salt River. Each year since the acquisition, Salt River has declared a $44,500 dividend. Salt River recorded net income of $73,500 in 2022 and $85,600 in 2023 . Selected account balances from the two companies' individual records were as follows: Problem 3-11 (Algo) (LO 3-3a) What is Palmcroft's consolidated retained earnings balance at December 31,2024 ? Multiple Cholce $326,550 $238,000 Required information Use the following information to answer problems 3-10 to 3-12 (Algo) (LO 3-3a) On January 1, 2022. Paimcroft Company acquired too percent of the outstanding voting shares of Salt River, Incorporated, for $786,000 cash. At January 1,2022 , Salt River's net assets had a total carrying amount of $550,200. Equipment (eightyear remaining life) was undervalued on Salt River's financial records by $108,000. Any remaining excess fair over book value was attributed to a database developed by Salt River (four-year remaining life), but not recorded on its books. Palmcroft applies the equity method to account for its investment in Salt River. Each year since the acquisition, Salt River has declared a $44,500 dividend. Salt River recorded net income of $73,500 in 2022 and $85,600 in 2023 . Selected account balances from the two companies' individual records were as follows: Problem 3-11 (Algo) (LO 3-3a) What is Palmcroft's consolidated retained earnings balance at December 31,2024 ? Multiple Cholce $326,550 $238,000
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