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On January 1, 2017, Cale Corp. paid $1,020,000 to acquire Kaltop Co. Kaltop maintained separate incorporation. Cale used the equity method to account for the investment. The following information is available for Kaltop's assets, liabilities, and stockholders' equity accounts on January 1, 2017: Book Value Fair Value Current assets $120,000 $120,000 Land 72,000 192,000 Building ( twenty year life) 240,000 268,000 Equipment (ten year life) 540,000 516,000 Current liabilities 24,000 24,000 Long term liabilities 120,000 120,000 Common Stock 228,000 Additional paid-in capital 384,000 Retained Earnings 216,000 Kaltop earned net income for 2017 of $126,000 and paid dividends of $48,000 during the year. At the end of 2017, the consolidation entry to eliminate Cale's accrual of Kaltop's earnings would include a credit to Investment in Kaltop Co. for Pregunta 9Seleccione una: a. $124, 400 b. $ 76,400. c. $ 0. d. $126,000. e. $127,000.

On January 1, 2017, Cale Corp. paid $1,020,000 to acquire Kaltop Co. Kaltop maintained separate incorporation. Cale used the equity method to account for the investment. The following information is available for Kaltop's assets, liabilities, and stockholders' equity accounts on January 1, 2017: Book Value Fair Value Current assets $120,000 $120,000 Land 72,000 192,000 Building ( twenty year life) 240,000 268,000 Equipment (ten year life) 540,000 516,000 Current liabilities 24,000 24,000 Long term liabilities 120,000 120,000 Common Stock 228,000 Additional paid-in capital 384,000 Retained Earnings 216,000 Kaltop earned net income for 2017 of $126,000 and paid dividends of $48,000 during the year. At the end of 2017, the consolidation entry to eliminate Cale's accrual of Kaltop's earnings would include a credit to Investment in Kaltop Co. for Pregunta 9Seleccione una: a. $124, 400 b. $ 76,400. c. $ 0. d. $126,000. e. $127,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On January 1, 2017, Cale Corp. paid $1,020,000 to acquire Kaltop Co. Kaltop maintained separate incorporation. Cale used the equity method to account for the investment. The following information is available for Kaltop's assets, liabilities, and stockholders' equity accounts on January 1, 2017: Book Value Fair Value Current assets $120,000 $120,000 Land 72,000 192,000 Building ( twenty year life) 240,000 268,000 Equipment (ten year life) 540,000 516,000 Current liabilities 24,000 24,000 Long term liabilities 120,000 120,000 Common Stock 228,000 Additional paid-in capital 384,000 Retained Earnings 216,000 Kaltop earned net income for 2017 of $126,000 and paid dividends of $48,000 during the year. At the end of 2017, the consolidation entry to eliminate Cale's accrual of Kaltop's earnings would include a credit to Investment in Kaltop Co. for Pregunta 9Seleccione una: a. $124, 400 b. $ 76,400. c. $ 0. d. $126,000. e. $127,000.
Transcribed Image Text:On January 1, 2017, Cale Corp. paid $1,020,000 to acquire Kaltop Co. Kaltop maintained separate incorporation. Cale used the equity method to account for the investment. The following information is available for Kaltop's assets, liabilities, and stockholders' equity accounts on January 1, 2017: Book Value Fair Value Current assets $120,000 $120,000 Land 72,000 192,000 Building ( twenty year life) 240,000 268,000 Equipment (ten year life) 540,000 516,000 Current liabilities 24,000 24,000 Long term liabilities 120,000 120,000 Common Stock 228,000 Additional paid-in capital 384,000 Retained Earnings 216,000 Kaltop earned net income for 2017 of $126,000 and paid dividends of $48,000 during the year. At the end of 2017, the consolidation entry to eliminate Cale's accrual of Kaltop's earnings would include a credit to Investment in Kaltop Co. for Pregunta 9Seleccione una: a. $124, 400 b. $ 76,400. c. $ 0. d. $126,000. e. $127,000.
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