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Prime Company holds 80 percent of Suspect Companys stock, acquired on January 1,20X2, for $...

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Accounting

Prime Company holds 80 percent of Suspect Companys stock, acquired on January 1,20X2, for $ 160,000. On the acquisition date, the fair value of the noncontrolling interest was $ 40,000. Suspect reported retained earnings of $ 50,000 and had $100,000 of common stock outstanding. Prime uses the fully adjusted equity method in accounting for its investment in Suspect.

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