On January 1, 2018, Jackie Corp. purchased 30% of the voting common stock of Rob Co., paying $2,000,000. Jackie properly accounts for this investment using the equity method. At the time of the investment, Rob's total stockholders' equity was $3,000,000. Jackie gathered the following information about Rob's assets and liabilities whose book values and fair values differed: Book ValueFair ValueBuildings (15-year life)$1,000,000$1,500,000Equipment (5-year life) 2,500,000 3,000,000Franchises (10-year life)$0$500,000??Any excess of cost over fair value was attributed to goodwill, which has not been impaired. Rob Co. reported net income of $300,000 for 2018, and paid dividends of $100,000 during that year.?What is the amount of excess amortization expense for Jackie Corp's investment
in Rob Co. for year 2018?
A. $30,000.
B. $0.
C. $60,000.
D. $40,000.
E. $55,000.
Answer: E
You might also like to view...
In the stock market, the market cap of a large-cap stock is more than:
A. $10 billion. B. $20 billion. C. $1 billion. D. $50 million. E. $5 million.
In terms of substantiation of advertising claims, the Federal Trade Commission (FTC) and the courts consider the totality of evidence
If the company has one study that supports the ad claim, but a number of other studies contradict the claim, the FTC and courts will find the claim has not been properly substantiated. Indicate whether the statement is true or false
Longitude Company borrowed on a two-year, 10%, $150,000 note on May 1, with interest and principal to be paid at maturity. How much interest will Longitude report on its income statement for the year ending December 31?
a. $ 10,000 b. $ 15,000 c. $ 30,000 d. $ 5,000
________ are determined before conducting the analysis, based on the researcher's theoretical framework
A) Single comparison contrasts B) Multiple comparison contrasts C) A priori contrasts D) A posteriori contrasts