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On January 1, 2020, Mermaid Heel Guild paid $1 , 160 , 000 to acquire Sabertooth Guild. Sabertooth maintained separate incorporation. Mermaid Heel uses the
On January 1, 2020, Mermaid Heel Guild paid $1 , 160 , 000 to acquire Sabertooth Guild. Sabertooth maintained separate incorporation. Mermaid Heel uses the sophisticated equity method to account for the investment. The following information is avallable for Sabertooth Guild's assets, liabilities, and stockholders' equity accounts on January 1, 2020: Sabertooth Gulld earned net income for 2020 of $134 , 000 and paid dividends of $51 , 000 during the year. At the end of 2020, the consolidation entry to eliminate Mermaid Heel's accrual of Sabertooths earnings would include a credit 10 Investment in Sabertooth Gulld for Multiple Choice $0. $134 , 000 $133 , 100 . $83 , 000 $134 , 900
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