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Patty Corporation acquired 100 percent of Oliver Company's outstanding common stock on January 1, 20X1 for $639,000 in cash. Oliver reported net assets with a carrying amount of $374,000 at that time. Some of Oliver's assets either were unrecorded (having been internally developed) or had fair values that differed from book values as follows: Book Fair Values Values Trademarks (indefinite life) $ 101,500 $249,500 Customer relationships (5- 0 91,200 year remaining life) Equipment (10-year remaining life) 364,000 323,800 Any goodwill is considered to have an indefinite life with no impairment charges during the year. Assume Patty applies the equity method to account for its investment in Oliver. In year 2021, Oliver reported net income of $350,600 and declared dividend of $98,000. The amount of Equity in Oliver Earnings reported on Patty's financial record before consolidation would be: 336,380 328,340 252,600 350,600

Patty Corporation acquired 100 percent of Oliver Company's outstanding common stock on January 1, 20X1 for $639,000 in cash. Oliver reported net assets with a carrying amount of $374,000 at that time. Some of Oliver's assets either were unrecorded (having been internally developed) or had fair values that differed from book values as follows: Book Fair Values Values Trademarks (indefinite life) $ 101,500 $249,500 Customer relationships (5- 0 91,200 year remaining life) Equipment (10-year remaining life) 364,000 323,800 Any goodwill is considered to have an indefinite life with no impairment charges during the year. Assume Patty applies the equity method to account for its investment in Oliver. In year 2021, Oliver reported net income of $350,600 and declared dividend of $98,000. The amount of Equity in Oliver Earnings reported on Patty's financial record before consolidation would be: 336,380 328,340 252,600 350,600

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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Patty Corporation acquired 100 percent of Oliver Company's outstanding common stock on January 1, 20X1 for $639,000 in cash. Oliver reported net assets with a carrying amount of $374,000 at that time. Some of Oliver's assets either were unrecorded (having been internally developed) or had fair values that differed from book values as follows: Book Fair Values Values Trademarks (indefinite life) $ 101,500 $249,500 Customer relationships (5- 0 91,200 year remaining life) Equipment (10-year remaining life) 364,000 323,800 Any goodwill is considered to have an indefinite life with no impairment charges during the year. Assume Patty applies the equity method to account for its investment in Oliver. In year 2021, Oliver reported net income of $350,600 and declared dividend of $98,000. The amount of Equity in Oliver Earnings reported on Patty's financial record before consolidation would be: 336,380 328,340 252,600 350,600
Transcribed Image Text:Patty Corporation acquired 100 percent of Oliver Company's outstanding common stock on January 1, 20X1 for $639,000 in cash. Oliver reported net assets with a carrying amount of $374,000 at that time. Some of Oliver's assets either were unrecorded (having been internally developed) or had fair values that differed from book values as follows: Book Fair Values Values Trademarks (indefinite life) $ 101,500 $249,500 Customer relationships (5- 0 91,200 year remaining life) Equipment (10-year remaining life) 364,000 323,800 Any goodwill is considered to have an indefinite life with no impairment charges during the year. Assume Patty applies the equity method to account for its investment in Oliver. In year 2021, Oliver reported net income of $350,600 and declared dividend of $98,000. The amount of Equity in Oliver Earnings reported on Patty's financial record before consolidation would be: 336,380 328,340 252,600 350,600
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