Planer Co. purchased 100% of Schedule Co's common stock on January 1, 2022, for $380,000. On...
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Planer Co. purchased 100% of Schedule Co's common stock on January 1, 2022, for $380,000. On that date, Schedule reported net assets with a historical cost of $350,000 and a fair value of $380,000. The difference was due to the increased value of patent which had a remaining useful life of 10 years. During 2022 & 2023, Schedule reported net income of $60,000 and $100,000, and paid dividends of $25,000 and $45,000, respectively. What is the balance of the Investment in Schedule account on Planner's balance sheet at December 31, 2023, after all required equity method entries have been recorded? Hint: Use the T-account to help you in your calculations. O a. $470,000 O b. $464,000 O c. $440,000 O d. $434,000 Planer Co. purchased 100% of Schedule Co's common stock on January 1, 2022, for $380,000. On that date, Schedule reported net assets with a historical cost of $350,000 and a fair value of $380,000. The difference was due to the increased value of patent which had a remaining useful life of 10 years. During 2022 & 2023, Schedule reported net income of $60,000 and $100,000, and paid dividends of $25,000 and $45,000, respectively. What is the balance of the Investment in Schedule account on Planner's balance sheet at December 31, 2023, after all required equity method entries have been recorded? Hint: Use the T-account to help you in your calculations. O a. $470,000 O b. $464,000 O c. $440,000 O d. $434,000
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Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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