on January 1, 2019 Dotterel Corporation paid $200,000 cash for 40% of the voting common stock of Swamp Land Inc. Book value and fair value information for Swamp on this date is as follows: Assets Book Values Fair Values Cash $ 60,000 $ 60,000 Accounts receivable 120,000 120,000 Inventories 80,000 100,000 Equipment 340,000 400,000 $ 600,000 $ 680,000 Liabilities & Equities Accounts payable $ 200,000 $ 200,000 Note payable 120,000 100,000 Capital stock 200,000 Retained earnings 80,000 $ 600,000 $ 300,000 The investee reported 100,000 $ of earnings for 2019 but no dividends was declared. The inventory was sold during 2019, the equipment has 10 years useful life, notes payable due in 5 years. A- The amount of the full good will acquisition date is: 22000 23000 48000 19200 _______________________________________________________________________________ B- The balance of Dotterel’s investment as on DEC 31,2019 is: 40000 182000 228000 28000
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on January 1, 2019 Dotterel Corporation paid $200,000 cash for 40% of the voting common stock of Swamp Land Inc. Book value and fair value information for Swamp on this date is as follows: |
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|
|
Assets |
Book Values |
Fair Values |
|
|
|
Cash |
$ 60,000 |
$ 60,000 |
|
|
|
|
120,000 |
120,000 |
|
|
|
Inventories |
80,000 |
100,000 |
|
|
|
Equipment |
340,000 |
400,000 |
|
|
|
|
$ 600,000 |
$ 680,000 |
|
|
|
Liabilities & Equities |
|
|
|
|
|
Accounts payable |
$ 200,000 |
$ 200,000 |
|
|
|
Note payable |
120,000 |
100,000 |
|
|
|
Capital stock |
200,000 |
|
|
|
|
|
80,000 |
|
|
|
|
|
$ 600,000 |
$ 300,000 |
|
The investee reported 100,000 $ of earnings for 2019 but no dividends was declared. The inventory was sold during 2019, the equipment has 10 years useful life, notes payable due in 5 years.
A- The amount of the full good will acquisition date is:
22000
23000
48000
19200
_______________________________________________________________________________
B- The balance of Dotterel’s investment as on DEC 31,2019 is:
40000
182000
228000
28000
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