13. Jeffrey Company bought 20% of Cooper Corporation's ordinary shares on January 1, 2021 for 11,400.000....

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13. Jeffrey Company bought 20% of Cooper Corporation's ordinary shares on January 1, 2021 for 11,400.000. Carrying amount of Cooper's net assets at purchase date totaled 50,000,000. Fair value and carrying amounts were the same for all items except for plant and inventory, for which fair values exceed their carrying amounts by 10,000,000 and 2,000,000 respectively. The plant has a 5-year life. All inventory was sold during 2021. During 2021, Cooper reported profit of 30,000,000 and paid a 10,000,000 cash dividend. Based on the above information, answer the following 1. What amount should Jeffrey report as net income related to this investment in 2021? a. 5,200,000 b. 6,200,000 c. 5,400,000 d. 4,200,000 2. The carrying amount of Investment in Cooper Corporation as of December 31, 2021 a. 14,600,000 b. 14,800,000 c. 13,600,000 d. 15,600,000 13. Jeffrey Company bought 20% of Cooper Corporation's ordinary shares on January 1, 2021 for 11,400.000. Carrying amount of Cooper's net assets at purchase date totaled 50,000,000. Fair value and carrying amounts were the same for all items except for plant and inventory, for which fair values exceed their carrying amounts by 10,000,000 and 2,000,000 respectively. The plant has a 5-year life. All inventory was sold during 2021. During 2021, Cooper reported profit of 30,000,000 and paid a 10,000,000 cash dividend. Based on the above information, answer the following 1. What amount should Jeffrey report as net income related to this investment in 2021? a. 5,200,000 b. 6,200,000 c. 5,400,000 d. 4,200,000 2. The carrying amount of Investment in Cooper Corporation as of December 31, 2021 a. 14,600,000 b. 14,800,000 c. 13,600,000 d. 15,600,000

Answer rating: 100% (QA)

Ans 1 a 5200000 2 a 14600000 Explanation 1 Share of profit 6000000 3000000020 Less Share of Amo... View the full answer