Homework Answers
| Acquisition price | 2040000 | |
| Add: Share of net income | 250800 | =627000*40% |
| Less: Dividends | -136000 | =68000*2 |
| Balance in Investment account at December 31 | 2154800 | |
| Option D $2,154,800 is correct |
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On January 1, Puckett Company paid $2.04 million for 68,000 shares of Harrison's voting common stock,...
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JJU Total points awarded He Problem 1-6 (LO 1-3) On January 1, Puckett Company paid $1.30 million for 52,000 shares of Harrison's voting common stock, which represents a 40 percent investment. No allocation to goodwill or other specific account was made. Significant influence over Harrison is achieved by this acquisition and so Puckett applies the equity method. Harrison distributed a dividend of $3 per share during the year and reported net income of $561,000. What is the balance in the...
6 and 7 show solution losses. 1. Puckett Company paid $1.6 million for 50.000 shares of...
6 and 7 show solution
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6 and 7 show solution
losses. 1. Puckett Company paid $1.6 million for 50.000 shares of Harrison's voting con which represents a 40 percent investment. No allocation to goodwill or other specific accoun stock, which represents a 40 percent inve was made. Signific de. Significant influence over Harrison is achieved by this acquisition and so Puckett applies the equity method. Harrison declared a Spe hod. Harrison declared a $2 per share dividend during the year and reported net income of...
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