Need help with this accounting problem On 1-1-2015 Broadhead corp. purchased 30% of Camp Tech for $45 million.The purchase gave Broadhead significant influence over Camp Tech. On thedate of purchase, the book value of Camp Tech's net assets was $75 millionand their fair value was $90 million. The difference was because of the fairvalue of equipment exceeding book value, and the remaining useful life ofthis equipment was 5 years. In 2014, Camp Tech reported a net income of$75 million and declared and paid $20 million in dividends.A) Relative to its investment in Camp Tech, what is the amount ofinvestment income reported by Broadhead corp. on it's year end 12-31-15income statement?B) What is the total amount that Broadhead corp. would report for it'sinvestment in Camp Tech on its 12-31-15 balance sheet?C) Assuming Broadhead cannot exercise significant influence over CampTech and classifies this investment as available for sale, what is the totalinvestment income reported by Broadhead Corp. on it's year end 12-31-15income statement?

Step 1: Define Investment IncomeIncome which is earned due to amount invested into financial…

Answered: On 1-1-2015 Broadhead corp. purchased…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11PB: On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received...

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