On 1/1/2015, Choco paid $150,000 to acquire 40% of the voting common stock of Cookie. Following is
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On 1/1/2015, Choco paid $150,000 to acquire 40% of the voting common stock of Cookie. Following is the financial information about Cookie.
| Book value of assets | $450,000 |
| Book value of liabilities | $125,000 |
| Net income (2015) Net income (2016) | $80,000 $100,000 |
| Dividends (2015) Dividends (2016) | $40,000 $45,000 |
| Fair market value of investment 1/1/2015 Fair market value of investment 12/31/2016 | $160,000 $180,000 |
Cookie has a patent with book value of $5,000 but actually $25,000 with 8 years remaining life.
What is the balance of the investment account in Cookie at 12/31/2016?
Expert Answer:
The balance of the investment account in Cookie at 12312016 is 33798154 Heres how we can calculate i... View the full answer
Related Book For 
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date:
