On January 1, 2015, Bell Company acquires an 80% interest in Carter Company for $140,000. The purchase
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The investment is recorded under the simple equity method.
On January 1, 2017, Ace Company purchases a 60% interest in Bell Company for $420,000. Ace Company believes that the patent value remaining on the investment by Bell in Carter is stated correctly. Comparative equities of Bell Company and Carter Company immediately prior to the purchase reveal the following:
An analysis of the separate accounts of Bell and Carter on January 1, 2017, reveals that Carter's inventory is undervalued by $20,000 and that Bell's equipment with a 5-year future life is undervalued by $30,000. All other book values approximate fair values for Bell and Carter.
Prepare the determination and distribution of excess schedule for Ace's purchase of Bell Company on January 1, 2017.
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Related Book For
Advanced Accounting
ISBN: 978-1305084858
12th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
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