Chapter_1_day_1_solutions

Chapter_1_day_1_solu - 12(10 minutes(Investment account after two years Acquisition Price $60,000 Book Value—assets minus liabilities($125,000 ×

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Unformatted text preview: 12. (10 minutes) (Investment account after two years) Acquisition Price................................................................................... $60,000 Book Value—assets minus liabilities ($125,000 × 40%)................ 50,000 Excess Payment............................................................$10,000 Value of patent in excess of book value ($15,000 × 40%)............. 6,000 Goodwill.................................................................................$4,000 Amortization: Patent ($6,000/6)...............................................................$1,000 Goodwill............................................................................ -0- Annual amortization...................................................$1,000 Acquisition price.................................................................$60,000 Equity income 2008 ($30,000 × 40%)...................................12,000 Dividends—2008 ($10,000 × 40%)....................................... (4,000)Dividends—2008 ($10,000 × 40%)....
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This note was uploaded on 04/05/2010 for the course ACCY 260 taught by Professor Yu during the Spring '10 term at Ferrum.

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Chapter_1_day_1_solu - 12(10 minutes(Investment account after two years Acquisition Price $60,000 Book Value—assets minus liabilities($125,000 ×

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