Question
On January 2, 2020, Warner Co. purchased 40% of Kyle Co.’s outstanding common stock. The carrying...
On January 2, 2020, Warner Co. purchased 40% of Kyle Co.’s outstanding common stock. The carrying amount of Kyle's depreciable assets was $1,000,000 on January 2. Kyle's depreciable assets had an original useful life of 10 years and a remaining useful life of 5 years. Warner recognized $30,000 depreciation adjustment for the current year ending December 31 related to its investment in Kyle due to the excess of fair value over book value on these assets. What was the fair value of Kyle's depreciable assets on January 2, 2020?
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
ON JANUARY 2, 2020, RAMS CORP. ACQUIRED 30% OF THE OUTSTANDING COMMON STOCK OF COLTS CO....
ON JANUARY 2, 2020, RAMS CORP. ACQUIRED 30% OF THE OUTSTANDING
COMMON STOCK OF COLTS CO. FOR $2,000,000. THIS ACQUISITION GAVE THE
RAMS THE ABILITY TO EXERCISE SIGNIFICANT INFLUENCE OVER THE
INVESTEE. THE 100% BOOK VALUE OF THE ACQUIRED SHARES WAS
$4,500,000.
ANY EXCESS COST OVER THE UNDERLYING BOOK VALUE WAS ASSIGNED TO A
PATENT THAT WAS UNDERVALUED ON THE COLT'S BALANCE SHEET. THIS
PATENT HAS A REMAINING USEFUL LIFE OF TEN YEARS.
FOR THE YEAR ENDED DECEMBER 31, 2020,...
On January 1, 2014, Midwest Co. purchased 50% of the outstanding voting stock of Gill Co...
On January 1, 2014, Midwest Co. purchased 50% of the outstanding
voting stock of Gill Co for $500,000. The book value of Gill's net
assets on the acquisition date was $800,000. Gill's depreciable
assets with a ten-year remaining life had a fair value that was
$100,000 more than the book value (Midwest's share of this amount
is $50,000). The amount of good will associated with this
investment is
1)Presents Inc. acquired all of the outstanding common stock of Santa Co. on January 1, 2017,...
1)Presents Inc. acquired all of the outstanding common stock of
Santa Co. on January 1, 2017, for $257,000. Annual amortization of
$19,000 resulted from this acquisition. Presents reported net
income of $70,000 in 2017 and $50,000 in 2018 and paid $22,000 in
dividends each year. Santa reported net income of $40,000 in 2017
and $47,000 in 2018 and paid $10,000 in dividends each year. What
is the amount of consolidated net income for the year
2018?
A. $0.
B. $70,000....
On January 1, 2020, Jordan Inc. purchased 25% of the outstanding common stock of Melody Corporation...
On January 1, 2020, Jordan Inc. purchased 25% of the outstanding
common stock of Melody Corporation at a cost of $450,000. Melody
Corporation had 400,000 shares of common stock outstanding. At the
date of purchase, the book value of Melody’s net assets was
$1,500,000. Book value and fair value of net assets were the same
for all balance sheet items except for machinery and inventory. The
fair value exceeded the book value by $100,000 for machinery and
$20,000 for the...
Q3. During January 2019, Mindy, Inc. acquired 30% of the outstanding common stock of Milton Co....
Q3. During January 2019, Mindy, Inc. acquired 30% of the
outstanding common stock of Milton Co. for $1,500,000. This
investment gave Mindy the ability to exercise significant influence
over Milton. Milton’s assets on that date were recorded at
$6,400,000 with liabilities of $3,000,000. Any excess of cost over
book value of Mindy’ investment was attributed to unrecorded
patents having a remaining useful life of ten years. In 2019,
Milton reported net income of $600,000. For 2020, Milton reported
net income...
In January 2020, Domingo, Inc., acquired 20 percent of the outstanding common stock of Martes, Inc.,...
In January 2020, Domingo, Inc., acquired 20 percent of the
outstanding common stock of Martes, Inc., for $877,000. This
investment gave Domingo the ability to exercise significant
influence over Martes, whose balance sheet on that date showed
total assets of $4,594,000 with liabilities of $984,000. Any excess
of cost over book value of the investment was attributed to a
patent having a remaining useful life of 10 years. In 2020, Martes
reported net income of $235,000. In 2021, Martes reported...
On January 1st 2011, Green Corp purchased 20% of the outstanding voting common stock of Gold...
On January 1st 2011, Green Corp purchased 20% of the
outstanding voting common stock of Gold Company for $300000. The
book value of the acquired shares was $275000. The excess of cost
over book value is attributable to an intangible asset on Gold's
books that was undervalued and had a remaining useful life of 5
years. For the year ended December 31st 2011, Gold reported net
income of $125000 and paid cash dividends of $25000. What is the
carrying value...
Consolidation Problem On January 1 2020, Starbucks acquired 100% of Dunkin’s outstanding common stock for $1,000,000...
Consolidation Problem
On January 1 2020, Starbucks acquired 100% of Dunkin’s
outstanding common stock for $1,000,000 in cash. As of January 1
2020, the following fair values where determined.
Dunkin’s Buildings had a FV in excess of BV of
$150,000
Dunkin’s Equipment had a FV in excess of BV of
$40,000
Dunkin had an unrecorded patent with a FMV of
$10,000
For all other Dunkin Accounts as of Jan 1, 2020, all
other GAAP book values equaled fair values.
Here...
On January 3, 2018, Matteson Corporation acquired 40 percent of the outstanding common stock of O’Toole...
On January 3, 2018, Matteson Corporation acquired 40 percent of
the outstanding common stock of O’Toole Company for $1,304,000.
This acquisition gave Matteson the ability to exercise significant
influence over the investee. The book value of the acquired shares
was $917,000. Any excess cost over the underlying book value was
assigned to a copyright that was undervalued on its balance sheet.
This copyright has a remaining useful life of 10 years. For the
year ended December 31, 2018, O’Toole reported...
1)Presents Inc. acquired all of the outstanding common stock of Santa Co. on January 1, 2017,...
1)Presents Inc. acquired all of the outstanding common stock of
Santa Co. on January 1, 2017, for $257,000. Annual amortization of
$19,000 resulted from this acquisition. Presents reported net
income of $70,000 in 2017 and $50,000 in 2018 and paid $22,000 in
dividends each year.
Santa reported net income of $40,000 in 2017 and $47,000 in 2018
and paid $10,000 in dividends each year. On the consolidated
financial statements for 2017,
a)what amount should have been shown for Equity in...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 3 minutes ago
asked 5 minutes ago
asked 5 minutes ago
asked 6 minutes ago
asked 10 minutes ago
asked 12 minutes ago
asked 24 minutes ago
asked 39 minutes ago
asked 52 minutes ago
asked 55 minutes ago
asked 59 minutes ago
asked 1 hour ago