Question points
VA When Puff acquired of Smoke on January Year for $ the
imputed acquisition differential of $ was allocated entirely to goodwill. On
December Year a goodwill impairment loss of $ was recognized. Puff
uses the cost method to account for its investment in Smoke. Puff reported separate
entity net income in Year of $ and declared no dividends. Smoke recorded
separate entity net income of $ and paid dividends of $ in year
Required: Compute the following
a Consolidated net income for year
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b Income allocated to for year
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c Investment in Smoke at December Year assuming Puff used the equity
method to account for its investment in Smoke.
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