can you help me do this please ? Thank you PROBLEMS P 2-1...
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can you help me do this please ? Thank you
PROBLEMS P 2-1 putations for a midyear purchase (investee has an extraordinary gain Rit Corporation paid $686,000 for a 30 percent interest in Tel Corporation's outstanding voting stock on April 1, 2011. At December 31, 2010, Tel had net assets of $2,000,000 outstanding. During 2011, Tel declared and paid dividends of $40,000 each quarter on March 15, J 15, September 15, and December 15 ($160,000 in total). At April 1, 2011, the book value of assets and and only common stock une liabilities equals the fair value. Tel's 2011 income was reported as follows: Income before extraordinary item Extraordinary gain, December 2011 $240,000 80,000 $320,000 Net income REQUIRED: Determine the following items for Rit: 1. Goodwill from the investment in Tel 2. Income from Tel for 2011 3. Investment in Tel account balance at December 31, 2011 4. Rit's equity in Tel's net assets at December 31, 2011 5. The amount of extraordinary gain that Rit will show on its 2011 income statement
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