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On July 1, 2021, Harvest, Inc., acquires 60 percent of Patricia Company for $360,000. The remaining 40 percent of Patricia's outstanding shares continuo to trade at a collective value of $240,000. On that date, patent owned by Patricia with 10-year remaining life is undervalued by S100,000. Patricia has book value of net assets at S400.000 on January 1, 2021. The affiliates report the following 2021 amounts from their own separate operations: Harvest S700,000 $210,000 450,000 124,000 Patricia Revenues Expenses Dividends (declared 80,000 30,000 quarterly) Assume Patricia's revenues and expenses occurred uniformly throughout the year What amount is reported for goodwill in the December 31, 2021 consolidated balance sheet? O s0 O $60,000 O $40,000 O $50.000

On July 1, 2021, Harvest, Inc., acquires 60 percent of Patricia Company for $360,000. The remaining 40 percent of Patricia's outstanding shares continuo to trade at a collective value of $240,000. On that date, patent owned by Patricia with 10-year remaining life is undervalued by S100,000. Patricia has book value of net assets at S400.000 on January 1, 2021. The affiliates report the following 2021 amounts from their own separate operations: Harvest S700,000 $210,000 450,000 124,000 Patricia Revenues Expenses Dividends (declared 80,000 30,000 quarterly) Assume Patricia's revenues and expenses occurred uniformly throughout the year What amount is reported for goodwill in the December 31, 2021 consolidated balance sheet? O s0 O $60,000 O $40,000 O $50.000

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 24E
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On July 1, 2021, Harvest, Inc., acquires 60 percent of Patricia Company for $360,000. The remaining 40 percent of Patricia's outstanding shares continue to trade at a collective value of $240,000. On that date, patent owned by Patricia with 10-year remaining life is undervalued by S100,000. Patricia has book value of net assets at $400,000 on January 1, 2021. The affiliates report the following 2021 amounts from their own separate operations: Harvest Patricia S700,000 $210.000 80,000 30,000 Revenues Expenses Dividends (declared quarterly) Assume Patricia's revenues and expenses occurred uniformly throughout the year What amount is reported for goodwill in the December 31, 2021 consolidated balance 450,000 124,000 sheet? O so O $60,000 O $40,000 O $50.000
Transcribed Image Text:On July 1, 2021, Harvest, Inc., acquires 60 percent of Patricia Company for $360,000. The remaining 40 percent of Patricia's outstanding shares continue to trade at a collective value of $240,000. On that date, patent owned by Patricia with 10-year remaining life is undervalued by S100,000. Patricia has book value of net assets at $400,000 on January 1, 2021. The affiliates report the following 2021 amounts from their own separate operations: Harvest Patricia S700,000 $210.000 80,000 30,000 Revenues Expenses Dividends (declared quarterly) Assume Patricia's revenues and expenses occurred uniformly throughout the year What amount is reported for goodwill in the December 31, 2021 consolidated balance 450,000 124,000 sheet? O so O $60,000 O $40,000 O $50.000
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