Question: EXERCISES On January 1 , 2 0 1 3 , Plymouth Corporation purchased an 8 0 % interest in Salem Company for $ 1 ,

EXERCISES
On January 1,2013, Plymouth Corporation purchased an 80% interest in Salem Company for $1,200,000. A summary of Salem's balance sheet on that date revealed the following:
Receivables
Inventory
Equipment
Land
Liabilities
Common stock
Retained carnings
\table[[Book Value,Fair Value],[$200,000,$200,000
EXERCISES On January 1 , 2 0 1 3 , Plymouth

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