GIGİ Group completed an acquisition of an interest in another business, Venice Company, during the year and paid $300,000 in purchasing 25% interests in Venice. At the acquisition date, the acquisition-date fair value of the net assets of Venice was $800,000 while the net assets of Venice in the financial statements amounted to $600,000. At financial year end of GiGi, the net assets of Venice increased to $700,000. Determine the carrying amount of the investment in Venice at financial year end. Select one: a. $200,000 b. $275,000 c. $175,000 d. $325,000
GIGİ Group completed an acquisition of an interest in another business, Venice Company, during the year and paid $300,000 in purchasing 25% interests in Venice. At the acquisition date, the acquisition-date fair value of the net assets of Venice was $800,000 while the net assets of Venice in the financial statements amounted to $600,000. At financial year end of GiGi, the net assets of Venice increased to $700,000. Determine the carrying amount of the investment in Venice at financial year end. Select one: a. $200,000 b. $275,000 c. $175,000 d. $325,000
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity
Section: Chapter Questions
Problem 37RQSC
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