Angkasa Corporation paid Rp5,000,000 for 80% interest on Langit Biru Corporation on January 1, 2020. At the acquisition date, Langit Biru had Rp3,500,000 common stock and Rp1,500,000 retained earnings. Langit Biru had an unrecorded patent that still had 5 year of useful life, which is the only patent Langit Biru had. At the end of 2020, Langit Biru announced net income of Rp1,000,000 and distributed Rp500,000 cash dividend to all stakeholders. Investment income from Langit Biru for 2020 is:
Angkasa Corporation paid Rp5,000,000 for 80% interest on Langit Biru Corporation on January 1, 2020. At the acquisition date, Langit Biru had Rp3,500,000 common stock and Rp1,500,000 retained earnings. Langit Biru had an unrecorded patent that still had 5 year of useful life, which is the only patent Langit Biru had. At the end of 2020, Langit Biru announced net income of Rp1,000,000 and distributed Rp500,000 cash dividend to all stakeholders. Investment income from Langit Biru for 2020 is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Angkasa Corporation paid Rp5,000,000 for 80% interest on Langit Biru Corporation on January 1, 2020. At the acquisition date, Langit Biru had Rp3,500,000 common stock and Rp1,500,000 retained earnings . Langit Biru had an unrecorded patent that still had 5 year of useful life, which is the only patent Langit Biru had. At the end of 2020, Langit Biru announced net income of Rp1,000,000 and distributed Rp500,000 cash dividend to all stakeholders. Investment income from Langit Biru for 2020 is:
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