At the start of the current year, SBC Corp. purchased 30% of Sky Tech Inc. for $51 million. At the time of purchase, the carrying value of Sky Tech's net assets was $80 million. The fair value of Sky Tech's depreciable assets was $20 million in excess of ther book value. For this yeat Sky Tech reported a net income of $80 million and declared and paid $20 milion in dividends. The total amount of additional depreciation to be recognized by SBC over the remaining ife of the assets is: Multiple Choice $6.0 million. $20 million

At the start of the current year, SBC Corp. purchased 30% of Sky Tech Inc. for $51 million. At the time of purchase, the carrying value of Sky Tech's net assets was $80 million. The fair value of Sky Tech's depreciable assets was $20 million in excess of ther book value. For this yeat Sky Tech reported a net income of $80 million and declared and paid $20 milion in dividends. The total amount of additional depreciation to be recognized by SBC over the remaining ife of the assets is: Multiple Choice $6.0 million. $20 million

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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