Homework Answers
| Pailor’s share of Saska net income ($360,000 x 40%) | 144,000 |
| Add: Overvalued accounts receivable collected in 2013 | 5000 |
| Add: Undervalued accounts payable paid in 2013 | 4000 |
| Less: Undervalued inventories sold in 2005 | (16,000) |
| Less: Depreciation on building undervaluation $24,000/4 | (6,000) |
| Less: Amortization on patent $18,000/6 years | (3000) |
| Income from Saska | 128,000 |
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