non stock Of earnings of $210,000 on that date. Equipment was unde 30,000 and buildings were undervalued by $40,000, each having a 10-year remaining life. An deration transferred over fair value was attributed to goodwill with an indefinite life. Based or al review, goodwill has not been impaired. ers earns income and pays dividends as follows: 2010
non stock Of earnings of $210,000 on that date. Equipment was unde 30,000 and buildings were undervalued by $40,000, each having a 10-year remaining life. An deration transferred over fair value was attributed to goodwill with an indefinite life. Based or al review, goodwill has not been impaired. ers earns income and pays dividends as follows: 2010
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 19E
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0
56000
104000
97000
50400
Transcribed Image Text:Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2019. Demers reported
common stock of $300,000 and retained earnings of $210,000 on that date. Equipment was undervalued
by $30,000 and buildings were undervalued by $40,000, each having a 10-year remaining life. Any excess
consideration transferred over fair value was attributed to goodwill with an indefinite life. Based on an
annual review, goodwill has not been impaired.
Demers earns income and pays dividends as follows:
2020
2021
2019
$100,000 $120,000
$130,000
Net
income
Dividends 40,000 50,000
60,000
Assume the partial equity method is applied.
What is the consolidated balance of the Equity in Demers Earnings account at December 31, 2021.
Multiple Choice
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