Show work for both answers for questions 11 &12 .. Use...
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Accounting
Show work for both answers for questions 11 &12 ..
Use the following information for the next 2 questions: Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2014, Demers reported common stock of S300,000 and retained earmings of S210,000 on that date. Equipment was undervalued by $30,000 and buildings were undervalued by $40,000, each having a l remaining life. Any excess consideration transferred over fair value was attributed to goodwill 0-year with an indefinite life. Based on an annual review, goodwill has not been impaired. Demers earns income and pays dividends as follows: 2014 Net income Dividends 2015 $100,000 $120,000 50,000 2016 $130,000 40,000 60,000 11) Assume the EQUITY METHOD is applied. Compute Pel's income from Demers for the year ended December 31, 2014. A) $41,000. B) $74,400. C) $42,400 D) $80,000. E) $73,000. te the non-controlling interest in the net income of Demers at December 31, 2014 A) S10,600. B) $14,400. C) $12,000. D) $20,000. E) $18,600
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