3.2 hoyle 3rd - 3.2-1 If the parent's net income reflected...

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Fesler Inc. acquired all of the outstanding common stock of Pickett Company on January 1, 2009. Annual amortization of $22,000 resulted from this transaction. On the date of the takeover, Fesler reported retained earnings of $520,000 while Pickett reported a $240,000 balance. Fesler reported net income of $100,000 in 2009 and $68,000 in 20010 and paid dividends of $25,000 in dividends each year. Pickett reported net income of $24,000 in 2009 and $36,000 in 2010 and paid dividends of $10,000 in dividends each year. Assume that Fesler's reported net income includes Equity in Subsidiary Income.
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Unformatted text preview: 3.2-1. If the parent's net income reflected use of the equity method, what were the consolidated retained earnings on December 31, 2010? 3.2-2. If the parent's net income reflected use of the partial equity method, what were the consolidated retained earnings on December 31, 2010? 3.2-3. If the parent's net income reflected use of the initial value method, what were the consolidated retained earnings on December 31, 2010? 3.2-1 answer 3.2-2 answer 3.2-3 answer Difficulty: Medium...
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This note was uploaded on 02/23/2010 for the course ACCT 20842 taught by Professor Henry during the Spring '10 term at CSU San Bernardino.

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3.2 hoyle 3rd - 3.2-1 If the parent's net income reflected...

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