On January 1, 2015, Carlisle Enterprises reports net assets of $920,500, although equipment (with a six- year life) having a book value of $510,000 is worth $590,000 and an unrecorded patent is valued at $52,300. Horizon Corporation pays $845,000 on that date for an 85 percent ownership in Carlisle. If the patent is to be written off over a 12-year period, at what amount should it be reported on the consolidated statements on December 31, 2017?
On January 1, 2015, Carlisle Enterprises reports net assets of $920,500, although equipment (with a six- year life) having a book value of $510,000 is worth $590,000 and an unrecorded patent is valued at $52,300. Horizon Corporation pays $845,000 on that date for an 85 percent ownership in Carlisle. If the patent is to be written off over a 12-year period, at what amount should it be reported on the consolidated statements on December 31, 2017?
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 62P
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What amount should it be reported on the consolidated statement ?
Transcribed Image Text:On January 1, 2015, Carlisle Enterprises reports net
assets of $920,500, although equipment (with a six-
year life) having a book value of $510,000 is worth
$590,000 and an unrecorded patent is valued at
$52,300. Horizon Corporation pays $845,000 on that
date for an 85 percent ownership in Carlisle.
If the patent is to be written off over a 12-year period,
at what amount should it be reported on the
consolidated statements on December 31, 2017?
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