1. Business
  2. Accounting
  3. p23 computations for investee when excess allocated to inventories building...

Question: p23 computations for investee when excess allocated to inventories building...

Question details

P2-3 Computations for investee when excess allocated to inventories, building, and goodvitl Pop Company acquired a 30 percent interest in the voting slock of Son Company for $331,000 on Jnuary 1,2016, when Sons stockholders equity consisted of capital stock of $600,000 and retained eunings of
$400,000. At the time of Pops investment for inventories that were undervalued by $30,00 and a heilding with a lO-year remainingcful ie at was overvalued by S60.000. Son has income for 2016 of $100000 and pays dividends of $50.0) Assume undervalued inventories are sold in 2016 , Sonsavuets and lishilities were recrded at firvalues except REQUIRED 1. Compute Pops income from Son for 2016. 2. What is the balance of Pops Investmient in Son aco 3. What is Pops share of Sons recorded net assets at December 31. 2016? ust at December 11. 2016
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution