At the start of the current year, SBC Corp, purchased 25% OF Sky Tech Inc. for $48
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Question:
At the start of the current year, SBC Corp, purchased 25% OF Sky Tech Inc. for $48 million.
At the time of purchase, the carrying value of Sky Tech’s net asset was $76 million. The fair value of Sky Tech’ depreciable assets was $12 million is excess of their book value. For this year, Sky Tech reported a net income of $75 million and declared and paid $12 million in dividends.
The amount of purchased goodwill is:
$26 million.
$36 million.
$60 million.
None of the above is correct.
Related Book For
South Western Federal Taxation 2016 Corporations Partnerships Estates and Trusts
ISBN: 9781305399884
39th edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
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