On January 1, 2018, Archie acquires 90% of Jughead. Analysis of data relative to this purchase indicates that goodwill of $70,000 was acquired in this purchase. The goodwill is unimpaired. On July 1, 2020, Jughead sold a patent (5-year life, no salvage value) to Archie with a sales price of $140,000. Jughead's books value was $70,000. The net income of Archie and Jughead in 2020 is $560,000 (from its own operations) and $140,000 (net), respectively. How much is the net income attributable to equity holders of parent in 2020? a) 616,000 b)629,300 c)637,000 d)623,000
On January 1, 2018, Archie acquires 90% of Jughead. Analysis of data relative to this purchase indicates that goodwill of $70,000 was acquired in this purchase. The goodwill is unimpaired. On July 1, 2020, Jughead sold a patent (5-year life, no salvage value) to Archie with a sales price of $140,000. Jughead's books value was $70,000. The net income of Archie and Jughead in 2020 is $560,000 (from its own operations) and $140,000 (net), respectively. How much is the net income attributable to equity holders of parent in 2020? a) 616,000 b)629,300 c)637,000 d)623,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2018, Archie acquires 90% of Jughead. Analysis of data relative to this purchase indicates that
On July 1, 2020, Jughead sold a patent (5-year life, no salvage value) to Archie with a sales price of $140,000. Jughead's books value was $70,000. The net income of Archie and Jughead in 2020 is $560,000 (from its own operations) and $140,000 (net), respectively. How much is the net income attributable to equity holders of parent in 2020?
a) 616,000
b)629,300
c)637,000
d)623,000
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