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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. Palmcroft Company acquired 100 percent of
Required information Use the following information to answer problems 3-10 to 3-12 (Algo) (LO 3-3a) On January 1, 2022. Palmcroft Company acquired 100 percent of the outstanding voting shares of Sait 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. Sait 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 3-12 (Algo) (LO 3.3a) On its December 31, 2024, consolidated balance sheet, what amount should Paimcroft report for Salt River's database? Multiple Choice $25,560 $63,900 Required information Use the following information to answer problems 3-10 to 3-12 (Algo) (LO 3-3a) On January 1, 2022. Palmcroft Company acquired 100 percent of the outstanding voting shares of Sait 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. Sait 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 3-12 (Algo) (LO 3.3a) On its December 31, 2024, consolidated balance sheet, what amount should Paimcroft report for Salt River's database? Multiple Choice $25,560 $63,900
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