Ainun Corporation owns an 80 percent interest in Bahrun Corporation. At December 31, 2016, its Investment in Bahrun account is $3,500,000 and consists of $3,000,000 in equity and the remaining as goodwill. On July 1, 2017, Ainun decides to sell 70 percent of Bahrun’s interest for $3,000,000, resulting in a deconsolidation. For 2017, Bahrun’s net income and dividend are $320,000 and $30,000, respectively.

REQUIRED:

Calculate the gain or loss resulting from the deconsolidation.

Answer rating: 100% (QA)

Solution part a Amount of goodwill Pacinis investment in Abdoo Impl... View the full answer