Answer | |
Acquisition price |
$ 1,246,000 |
Add: Share in equity income (291000*40%) | $ 116,400 |
Less: Dividend received (45000*40%) | -$ 18,000 |
Less: Amortization | -$ 34,200 |
Investment on Dec 31 2015 | $ 1,310,200 |
Excess value allocated to patent | |
Amortization per year | $ 34,200 |
(1246000-904000)/10 | |
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