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On January 1, 2019, Hippo, Inc. acquired 40% of the outstanding common stock of Campus Co. for $276,000. This investment gave Hippo the ability to exercise significant influence over Campus. Campus' assets on that date were recorded at $1,850,000 with liabilities of $1,175,000. Any excess of cost over book value of Hippo's investment was attributed to unrecorded patents having a remaining useful life of three years. In 2019, Campus reported net income of $180,000. For 2020, Campus reported net income of $222,000. Dividends of $140,000 were paid in each of these two years. What was the reported balance of Hippo's Investment in Campus Co, at December 31, 2020? Previous Page Next Page Page 3 of 4

On January 1, 2019, Hippo, Inc. acquired 40% of the outstanding common stock of Campus Co. for $276,000. This investment gave Hippo the ability to exercise significant influence over Campus. Campus' assets on that date were recorded at $1,850,000 with liabilities of $1,175,000. Any excess of cost over book value of Hippo's investment was attributed to unrecorded patents having a remaining useful life of three years. In 2019, Campus reported net income of $180,000. For 2020, Campus reported net income of $222,000. Dividends of $140,000 were paid in each of these two years. What was the reported balance of Hippo's Investment in Campus Co, at December 31, 2020? Previous Page Next Page Page 3 of 4

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2019, Hippo, Inc. acquired 40% of the outstanding common stock of Campus Co. for $276,000. This investment gave Hippo the ability to exercise significant influence over Campus. Campus' assets on that date were recorded at $1,850,000 with liabilities of $1,175,000. Any excess of cost over book value of Hippo's investment was attributed to unrecorded patents having a remaining useful life of three years. In 2019, Campus reported net income of $180.000. For 2020, Campus reported net income of $222,000. Dividends of $140,000 were paid in each of these two years. What was the reported balance of Hippo's Investment in Campus Co. at December 31, 2020? Next Page Page 3 of 4 Previous Page
Transcribed Image Text:On January 1, 2019, Hippo, Inc. acquired 40% of the outstanding common stock of Campus Co. for $276,000. This investment gave Hippo the ability to exercise significant influence over Campus. Campus' assets on that date were recorded at $1,850,000 with liabilities of $1,175,000. Any excess of cost over book value of Hippo's investment was attributed to unrecorded patents having a remaining useful life of three years. In 2019, Campus reported net income of $180.000. For 2020, Campus reported net income of $222,000. Dividends of $140,000 were paid in each of these two years. What was the reported balance of Hippo's Investment in Campus Co. at December 31, 2020? Next Page Page 3 of 4 Previous Page
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