On January 1, 2021 ABC acquired 90% of DEF. 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, 2021, DEF sold a patent to ABC. The sales price was $140,000. DEF's book value was $70,000. DEF estimates that the patent has a life of 5 years and no salvage value. It will use straight line depreciation. For 2023, ABC's net income is $560,000 from its own operations. DEF had net income of $140,000. The 2023 net income attributable to equity holders of ABC is: O 629,300 O 637,000 O 616,000 O 623,000

On January 1, 2021 ABC acquired 90% of DEF. 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, 2021, DEF sold a patent to ABC. The sales price was $140,000. DEF's book value was $70,000. DEF estimates that the patent has a life of 5 years and no salvage value. It will use straight line depreciation. For 2023, ABC's net income is $560,000 from its own operations. DEF had net income of $140,000. The 2023 net income attributable to equity holders of ABC is: O 629,300 O 637,000 O 616,000 O 623,000

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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