You received partial credit in the previous attempt. View previous attempt 7 On January 1, 2019, Monica Company acquired 80 percent of Young Company's outstanding common stock for $872.000 The fair value of the noncontrolling interest at the acquisition date was $218.000 Young reported stockholders' equity accounts on that date as follows 10 Common stock-$10 per value Additional paid-in capital Retained earnings 1 100,000 50,000 610,000 8. Boon Print In establishing the acquisition value, Monica appraised Young's assets and ascertained that the accounting records undervalued a building with a five year remaining life by $70,000. Any remaining excess acquisition de fair value was allocated to a franchise agreement to be amortized over 10 years During the subsequent years, Young sold Monica inventory at a 30 percent gross profit rate, Monica consistently resold this merchandise in the year of acquisition or in the period immediately following Transfers for the three years after this business combination was created amounted to the following: Inventory Remaining at Year-End Transfer lat transfer Year Price price) 2019 $ Be, ce 330,000 2020 100,eee 32.000 2021 110,00 38.000 erences In addition, Monica sold Young several pieces of fully depreciated equipment on Januly 1, 2020, for $56,000. The equipment had originally cost Monica $90,000. Young plans to depreciate these assets over a five year period In 2021. Young earns a net income of $180,000 and declares and pays $55.000 in cash dividends. These figures increase the subsidiary's Retained Earnings to a $940,000 balance at the end of 2021. During this same year, Monica reported dividend income of $44,000 and an investment account containing the initial value balance of $872.000. No changes in Young's common stock accounts that in You received partial credit in the previous attempt. View previous attempt 7 On January 1, 2019, Monica Company acquired 80 percent of Young Company's outstanding common stock for $872.000 The fair value of the noncontrolling interest at the acquisition date was $218.000 Young reported stockholders' equity accounts on that date as follows 10 Common stock-$10 per value Additional paid-in capital Retained earnings 1 100,000 50,000 610,000 8. Boon Print In establishing the acquisition value, Monica appraised Young's assets and ascertained that the accounting records undervalued a building with a five year remaining life by $70,000. Any remaining excess acquisition de fair value was allocated to a franchise agreement to be amortized over 10 years During the subsequent years, Young sold Monica inventory at a 30 percent gross profit rate, Monica consistently resold this merchandise in the year of acquisition or in the period immediately following Transfers for the three years after this business combination was created amounted to the following: Inventory Remaining at Year-End Transfer lat transfer Year Price price) 2019 $ Be, ce 330,000 2020 100,eee 32.000 2021 110,00 38.000 erences In addition, Monica sold Young several pieces of fully depreciated equipment on Januly 1, 2020, for $56,000. The equipment had originally cost Monica $90,000. Young plans to depreciate these assets over a five year period In 2021. Young earns a net income of $180,000 and declares and pays $55.000 in cash dividends. These figures increase the subsidiary's Retained Earnings to a $940,000 balance at the end of 2021. During this same year, Monica reported dividend income of $44,000 and an investment account containing the initial value balance of $872.000. No changes in Young's common stock accounts that in
