1.) 0 100000 200000 300000 700000 2.) 48000 and 262800 48000 and 273000 42900 and 267900...

Question

Question

1.)

Dodd Co. acquired 75% of the common stock of Wallace Corp. for $1,800,000. The fair value of Wallaces net assets was $2,100,

0

100000

200000

300000

700000

2.)

Scott Co. acquired 70% of Gregg Co. for $525,000 on December 31, 2019 when Greggs book value was $580,000. The Gregg stock w

48000 and 262800

48000 and 273000

42900 and 267900

42900 and 262800

48000 and 267900

3.)

Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2019. Demers reported common stock of $300,000 and ret

580000

574400

548000

542400

541000

4.)

580000

668200

680100

692000

723000

business accounting

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Answer 1

Answer #1

Q1. {(1800000/0.75)-2100000}= $300,000

Q3. (Initial investment = 500.000) + (100,000×80%=80,000) - (Excess FV Annual Amortization 7,000×80%=5,600)

= $574,400

Q4. (Parent's Income ($1,320,000 - $740,000 = $580,000)) + (Sub's Income ($570,000 - $410,000) × .70 = $112,000) - (Excess Equipment Amortization for 2020 ($170,000 / 10) × .70 = $11,900)

= $680,100

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Answer 2

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