Under each of the following situations, what is the Investment in Rambis account balance on Herbert’s books on January 1, 2018? The parent uses the equity method. The parent uses the partial equity method. The parent uses the initial value method.
Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2017, for $574,000 in cash. Annual excess amortization of $12,000 results from this transaction. On the date of the takeover, Herbert reported
Assume that Herbert’s internal net income figures above do not include any income from the subsidiary.
Under each of the following situations, what is the Investment in Rambis account balance on Herbert’s books on January 1, 2018?
- The parent uses the equity method.
- The parent uses the partial equity method.
- The parent uses the initial value method.
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