Question: Question 1 7 Royce Co . acquired 4 8 % of Park Co . for $ 4 2 0 , 0 0 0 when Park's

Question 17
Royce Co. acquired 48% of Park Co. for $420,000 when Park's book value was $560,000. On that date, Park had equipment (with a ten-year life) that was undervalued in the financial records by $140,000. Two years later, the following figures were reported by the two companies (stockholders' equity accounts have been omitted from their separate operations).
\table[[,Royce Co.,Park Co.],[,Book Value,Book Value,Market Value],[Current Assets,$868,000,$420,000,$448,000
Question 17 Royce Co. acquired 48% of Park Co. for $420,000

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