Problem AlgoLO
On January Mcllroy, Inc., acquired a percent Interest in the common stock of Stinson, Inc., for $ Stinson's book value on that date consisted of common stock of $ and retained earnings of $ Also, the acquisitiondate falr value of the percent noncontrolling Interest was $ The subsidlary held patents with a year remalning life that were undervalued Within the company's accounting records by $ and an unrecorded customer list year remaining life assessed at a $ falr value. Any remaining excess acqulsitiondate falr value was assigned to goodwill. Since acquisition, Mcllroy has applied the equity method to Its Investment in Stinson account and no goodwill Impalrment has occurred. At yearend, there are no Intraentity payables or recelvables.
Intraentity Inventory sales between the two companles have been made as follows:
tableYearCost to Mcilroy,Transfer Price,Ending Balanceto Stinson,at transfer price$$$
