hn Inc. acquired all of the Canding common stock of Robe

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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using the equity method
Vaughn Inc. acquired all of the
outstanding common stock of Roberts
Co. on January 1, 2020, for $276,000.
Annual amortization of $21,000
resulted from this acquisition. Vaughn
reported net income of $80,000 in
2020 and $60,000 in 2021 and paid
$24,000 in dividends each year.
Roberts reported net income of
$50,000 in 2020 and $57,000 in 2021
and paid $12,000 in dividends each
year. What is the Investment in Roberts
Co. balance on Vaughn's books as of
December 31, 2021, if the equity
method has been applied?
Multiple Choice
●
• $317,000.
$326,000.
$341,000.
$368,000.
$383,000.
●
Transcribed Image Text:using the equity method Vaughn Inc. acquired all of the outstanding common stock of Roberts Co. on January 1, 2020, for $276,000. Annual amortization of $21,000 resulted from this acquisition. Vaughn reported net income of $80,000 in 2020 and $60,000 in 2021 and paid $24,000 in dividends each year. Roberts reported net income of $50,000 in 2020 and $57,000 in 2021 and paid $12,000 in dividends each year. What is the Investment in Roberts Co. balance on Vaughn's books as of December 31, 2021, if the equity method has been applied? Multiple Choice ● • $317,000. $326,000. $341,000. $368,000. $383,000. ●
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