Question
The summarized balance sheets of Wildhorse Company and Dobbs Company as of December 31, 2018 are as follows: WildhorseCompany Balance Sheet December 31, 2018 Assets$2250000
The summarized balance sheets of Wildhorse Company and Dobbs Company as of December 31, 2018 are as follows:
WildhorseCompany
Balance Sheet
December 31,2018
Assets$2250000
Liabilities$270000
Capital stock1125000
Retained earnings855000
Total equities$2250000
Dobbs Company
Balance Sheet
December 31, 2018
Assets$1680000
Liabilities$380000
Capital stock1090000
Retained earnings210000
Total equities$1680000
If Wildhorse Company acquired a 30% interest in Dobbs Company on December 31, 2018 for $320000 and the fair value method of accounting for the investment were used, the amount of the debit to Equity Investments (Dobbs) would have been
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Access For Computer Accounting
Authors: Donna Kay
19th Edition
1259741109, 9781259741104
