Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. exercise 12-22(algo) equity method; adjustment for

Exercise 12-22(Algo) Equity method; adjustment for depreciation LO12-6,12-7 Fizer Pharmaceutical paid $82 million on January...

90.2K

Verified Solution

Question

Accounting

Exercise 12-22(Algo) Equity method; adjustment for depreciation LO12-6,12-7 Fizer Pharmaceutical paid $82 million on January 2,2024, for 2 million shares of Care Cosmetics common stockThe investment represents a 20% Interest in the net assets of Carne and gave Fizer the ability to exercise significant influence over Carne's operations Fizer received dividends of $1 per share on December 21,2024, and Came reported net income of $45 million for the year ended December 31,2024. The fair value of Carne's common stock at December 312024, was $32.50 per share The book value of Carne's net assets was $210 million The fair value of Carne's depreciable assets exceeded their book value by $35. These assets had an average remaining useful life of seven years The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill Required: Complete the table below and prepare the appropriate journal entries related to the investment during 2024

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Answer the following question 1. Does the amount of enzyme influence the rate of reaction ? 2. Does the...

Biology
Q

What are the types of solar heating systems ?

Mechanical Engineering
Q

A 2000 v signle phase synchorunus generator isbeing used as a backup generator outside a diagnostic...

Electrical Engineering
Q

Stereoscopic vision occurs because O an animal has two cyes with partially overlapping visual fields...

Biology
Q

constant electric field of intensity E and a magnetic field of induction B coexist an...

Physics
Q

Consider quadrilateral JKLM below 17 6 54 L K

Geometry
Q

2 Camille launches a model rocket in an open field near her house The rocket...

Calculus
Q

ENG 201: TECHNICAL REPORT WRITING CLASSROOM WORK Travel Report Read the situation given below and...

Accounting
Q

1) (a) What proportion of total financing comes from non-owners for fiscal 2013? For fiscal...

Accounting
Q

Chapter 26 Homework, 5 Net present value method The following data are accumulated...

Accounting
Q

A landlord collected $6,900 cash from a tenant for December 2022's rent but the contract...

Accounting
Q

What is the purpose of establishing a valuation allowance for income tax accounting? What theoretical...

Accounting