Question
Suppose that Chuckie Cheese acquired 33.33% (one-third) of Toys R US from an unrelated third party for $80 million on October 1, 2012. At the
Suppose that Chuckie Cheese acquired 33.33% (one-third) of Toys R US from an unrelated
third party for $80 million on October 1, 2012. At the acquisition date, the total book value of Toys R US's shareholders' equity was $240 million. Both have September 30 fiscal year ends. For the fiscal year ended September 30, 2013, Toys R US earned a total net income of $70 million and paid total dividends of $20 million.
What would be the carrying amount of Chuckie Cheese's investment in Toys R US on September 30, 2013?
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Managerial Accounting
Authors: John J. Wild, Ken W. Shaw
2010 Edition
9789813155497, 73379581, 9813155493, 978-0073379586
