Question 2 (4 points) Royce Co. acquired 70% of Park Co. for $532,000 on December 31,...
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Question 2 (4 points) Royce Co. acquired 70% of Park Co. for $532,000 on December 31, 2019 when Park's book value was $640,000. The Royce stock was not actively traded. On the date of acquisition, Park had equipment (with a five-year life) that was undervalued in the financial records by $120,000. One year later, the two companies provided the selected amounts shown below. Additionally, no dividends have been paid. Royce Co. Book Value Current assets Equipment Buildings Liabilities Revenues Expenses Investment income Not Given What amount of consolidated net income for 2020 is attributable to Royce's controlling interest? $ 868,000 364,000 574,000 Book Value (546,000) (1,260,000) 730,000 Park Co. $ 420,000 $ 448,000 280,000 400,000 210,000 210,000 (168,000) Fair Value (168,000) (580,000) 430,000 Question 2 (4 points) Royce Co. acquired 70% of Park Co. for $532,000 on December 31, 2019 when Park's book value was $640,000. The Royce stock was not actively traded. On the date of acquisition, Park had equipment (with a five-year life) that was undervalued in the financial records by $120,000. One year later, the two companies provided the selected amounts shown below. Additionally, no dividends have been paid. Royce Co. Book Value Current assets Equipment Buildings Liabilities Revenues Expenses Investment income Not Given What amount of consolidated net income for 2020 is attributable to Royce's controlling interest? $ 868,000 364,000 574,000 Book Value (546,000) (1,260,000) 730,000 Park Co. $ 420,000 $ 448,000 280,000 400,000 210,000 210,000 (168,000) Fair Value (168,000) (580,000) 430,000
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Related Book For
College Accounting Chapters 1-30
ISBN: 978-1259631115
15th edition
Authors: John Price, M. David Haddock, Michael Farina
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