On January 1, 2019, ATA Company purchased 25% of the ordinary share of Passim Company by issuing 10000 par value S10, and fair market$25, paid direct fees and cost 5000, and indirect 1200 S. On this date, Passim had total owners' equity of $800,000 consisting of S200,000 in ordinary share, $500,000 premium, and S100,000 in retained earnings. Inventory undervalued 15000, equipment undervalued 50,000 with useful life 10 years and building undervalued 60,000 for 20 year. In 31/12/2019 net income was 50000, and dividend 20000, in 31/12/2020income was 70000 dividend 40000..
On January 1, 2019, ATA Company purchased 25% of the ordinary share of Passim Company by issuing 10000 par value S10, and fair market$25, paid direct fees and cost 5000, and indirect 1200 S. On this date, Passim had total owners' equity of $800,000 consisting of S200,000 in ordinary share, $500,000 premium, and S100,000 in retained earnings. Inventory undervalued 15000, equipment undervalued 50,000 with useful life 10 years and building undervalued 60,000 for 20 year. In 31/12/2019 net income was 50000, and dividend 20000, in 31/12/2020income was 70000 dividend 40000..
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 14RE
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