2.for his first purchased how much excess payment would be? On January 1 , 2018 , Apple Company pays 70,000 for 10 % interest in Hawaii Company On that date , Hawaii has a book value of 600,000 although equipment , which has a five - year life is undervalued by 100,000on its books .
2.for his first purchased how much excess payment would be?
On January 1 , 2018 , Apple Company pays 70,000 for 10 % interest in Hawaii Company On that date , Hawaii has a book value of 600,000 although equipment , which has a five - year life is undervalued by 100,000on its books . On January 1 , 2019. Apple acquire an additional 30 % of the Hawaii company for 264,000 this second purchase provides Apple the ability to exert significant influence over Hawaii , and Apple will now apply the equity method . At the time of the transaction Hawaii equipment with four - year life was undervalued by only $ 80,000 . During these two years Hawaii reported the following operational results Year 2018 net income210,000 and Dividends 110.000 Year 2019 net income 250,000 and dividend 100.000 Cash dividends are always paid on July 1 of each year and
Step by step
Solved in 2 steps with 2 images
