Acct P1-27 - Recognition of deferred $9,800 226800 b Acquisition Price $900,000 2007 Income 96,250 2007 Dividends-75000 2008 Income 191,450 2008

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Andrew Townsend P1-27) a) Income 2007 ($550,000 * 1/2 * 35%) = $96,250 Income 2008 Inventory on Dec 31, 2008 $70,000 ($575,000 * 35%) = $201,250 40% Deferral of unrealized ga -$9,800 $28,000 $191,450 Ownership percentage 35% $9,800 Income 2009 ($620,000 * 35%) = 217000
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Unformatted text preview: Recognition of deferred $9,800 226800 b) Acquisition Price $900,000 2007 Income 96,250 2007 Dividends-75000 2008 Income 191,450 2008 Dividends-150000 2009 Income 226800 2009 Dividends-150000 Investment in Miller $1,039,500...
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This note was uploaded on 03/22/2010 for the course ACCT 450 taught by Professor Smith during the Spring '10 term at E. Illinois.

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Acct P1-27 - Recognition of deferred $9,800 226800 b Acquisition Price $900,000 2007 Income 96,250 2007 Dividends-75000 2008 Income 191,450 2008

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