11,400,000. Carrying amount of Cooper's net assets at purchase date totaled 50, value and carrying amounts were the same for all items except for plant and inven fair values exceed their carrying amounts by 10,000,000 and 2,000,000 respective has a 5-year life. All inventory was sold during 2021. During 2021, Cooper rep 30,000,000 and paid a 10,000,000 cash dividend. Based on the above information, answer the following: 1. What amount should Jeffrey report as net income related to this investment in a. 5,200,000 b. 6,200,000 c. 5,400,000 d. 4,200,000 2. The carrying amount of Investment in Cooper Corporation as of December 31, a. 14,600,00 b. 14,800,000
11,400,000. Carrying amount of Cooper's net assets at purchase date totaled 50, value and carrying amounts were the same for all items except for plant and inven fair values exceed their carrying amounts by 10,000,000 and 2,000,000 respective has a 5-year life. All inventory was sold during 2021. During 2021, Cooper rep 30,000,000 and paid a 10,000,000 cash dividend. Based on the above information, answer the following: 1. What amount should Jeffrey report as net income related to this investment in a. 5,200,000 b. 6,200,000 c. 5,400,000 d. 4,200,000 2. The carrying amount of Investment in Cooper Corporation as of December 31, a. 14,600,00 b. 14,800,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:13. Jeffrey Company bought 20% of Cooper Corporation's ordinary shares on January 1, 2021 for
11,400,000. Carrying amount of Cooper's net assets at purchase date totaled 50,000,000. Fair
value and carrying amounts were the same for all items except for plant and inventory, for which
fair values exceed their carrying amounts by 10,000,000 and 2,000,000 respectively. The plant
has a 5-year life. All inventory was sold during 2021. During 2021, Cooper reported profit of
30,000,000 and paid a 10,000,000 cash dividend.
Based on the above information, answer the following:
1. What amount should Jeffrey report as net income related to this investment in 2021?
a. 5,200,000
b. 6,200,000
c. 5,400,000
d. 4,200,000
2. The carrying amount of Investment in Cooper Corporation as of December 31, 2021
a 14,600,000
b. 14,800,000
c. 13,600,000
d. 15,600,000
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