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On January 1, 2022, Prores Company acquired all of Speedy inc% voting stock for $21,600,000 Speedy's net assets were reported at amounts approximating book value, but Pronto determined that Speedy had the following previously unreported intangible assets Developed technology fair value $1,800,000, 5-year i Favorable leaves, fair value $900,000 year Speedy's shareholders equity on January 1, 2022, was $9,000,000 it is now December 31, 2023 wo years later). Speedy reported net income of $220,000 in 2022. There are no impairments of identifiable intangibiles or goodwill in 2022 or 2003 Pronto uses the complete equity method to report its investment in Speedy on its own books. Speedy's December 31, 2023, trial balance appears below

On January 1, 2022, Prores Company acquired all of Speedy inc% voting stock for $21,600,000 Speedy's net assets were reported at amounts approximating book value, but Pronto determined that Speedy had the following previously unreported intangible assets Developed technology fair value $1,800,000, 5-year i Favorable leaves, fair value $900,000 year Speedy's shareholders equity on January 1, 2022, was $9,000,000 it is now December 31, 2023 wo years later). Speedy reported net income of $220,000 in 2022. There are no impairments of identifiable intangibiles or goodwill in 2022 or 2003 Pronto uses the complete equity method to report its investment in Speedy on its own books. Speedy's December 31, 2023, trial balance appears below

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, 2022, Pronto Company acquired all of Speedy inc.'s voting stock for $21,600,000 Speedy's net assets were reported at amounts approximating book value, but Pronto determined that Speedy had the following previously unreported intangible assets Developed technology, fair value $1,800,000, 5-year Favorable leases, fair value $900,000, 4-year fe Speedy's shareholders' equity on January 1, 2022, was $9,000,000. It is now December 31, 2023 (two years later). Speedy reported net income of $720,000 in 2022. There are no impairments of identifiable intangibles or goodwill in 2022 or 2003 Pronto uses the complete equity method to report its investment in Speedy on its own books. Speedy's December 31, 2023, trial balance appears below Dr (Cr) Current assets $18,000,000 Property and equipment, net 45,000,000 Liabilities (52,200,000) Capital stock (1.800.000 Ratained earnings, January (7.920,000 163,000,000 54,000,000 7,920.000 Sales revenue Cost of goods sold Operating expenses What is the Investment in Speedy balance at December 31, 2021 reported on Pronto's books? Select one D 30 $21,735,000 b. $22.230,000 c$21,600.000 d $22,095,000
Transcribed Image Text:On January 1, 2022, Pronto Company acquired all of Speedy inc.'s voting stock for $21,600,000 Speedy's net assets were reported at amounts approximating book value, but Pronto determined that Speedy had the following previously unreported intangible assets Developed technology, fair value $1,800,000, 5-year Favorable leases, fair value $900,000, 4-year fe Speedy's shareholders' equity on January 1, 2022, was $9,000,000. It is now December 31, 2023 (two years later). Speedy reported net income of $720,000 in 2022. There are no impairments of identifiable intangibles or goodwill in 2022 or 2003 Pronto uses the complete equity method to report its investment in Speedy on its own books. Speedy's December 31, 2023, trial balance appears below Dr (Cr) Current assets $18,000,000 Property and equipment, net 45,000,000 Liabilities (52,200,000) Capital stock (1.800.000 Ratained earnings, January (7.920,000 163,000,000 54,000,000 7,920.000 Sales revenue Cost of goods sold Operating expenses What is the Investment in Speedy balance at December 31, 2021 reported on Pronto's books? Select one D 30 $21,735,000 b. $22.230,000 c$21,600.000 d $22,095,000
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