On January 1, 20X1, Peace, Inc., acquired 70 percent of Silver's outstanding voting stock. No excess fair-value amortization resulted from the acquisition. On January 1, 20X1, Peace sold equipment to Silver for $20,000. This asset originally cost $32,000 but had a January 1, 20X1, book value of $16,000. At the time of transfer, the equipment's remaining life was estimated to be four years. Silver reported net income of $150,000 for year 20X1. Assume Peace applied equity method to account for this investment. Compute the amount of Income from Silver Peace would record in its internal record for year 20X1 $102,000 $104,000 $105,000 $101,000
On January 1, 20X1, Peace, Inc., acquired 70 percent of Silver's outstanding voting stock. No excess fair-value amortization resulted from the acquisition.
On January 1, 20X1, Peace sold equipment to Silver for $20,000. This asset originally cost $32,000 but had a January 1, 20X1, book value of $16,000. At the time of transfer, the equipment's remaining life was estimated to be four years. Silver reported net income of $150,000 for year 20X1. Assume Peace applied equity method to account for this investment. Compute the amount of Income from Silver Peace would record in its internal record for year 20X1
$102,000
$104,000
$105,000
$101,000
Income is the money or fiscal gain that an individual or reality earns or receives during a specific period, generally measured over a set timeframe similar as a month, time, or financial period. Income is a critical element of an existent's or business's fiscal well-being, and it's frequently used to meet colorful fiscal scores, including charges, levies, savings, and investments. It's also a crucial factor in determining an existent's standard of living and overall profitable stability.
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