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Just answer letter C only. Thanks Chapter 3 Homework 1. Davis acquires 100% of...

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Just answer letter C only. Thanks

Chapter 3 Homework 1. Davis acquires 100% of Ramos on January 1, 2009. Ramos will be operated as a separate subsidiary. Davis will use the equity method to account for its investment in Ramos. In 2013, Davis has net income of $400,000 and pays dividends of $100,000. Ramos has net income of $200,000 and pays dividends of $75,000. At acquisition date, Davis has a building with a book value of $3,000,000 and a fair value of $4,000,000. At that date, Ramos had a building with a book value of $800,000 and fair value of $900,000. Both buildings have a remaining useful life of 5 years (assume straight line depreciation). A+Dec31,2013 Davis had BV B dg of 5,000,000+FV b. How much are consolidated dividends for 2013 c. Prepare worksheet entry " A " at December 31, 2013 (assume there is no goodwill). d. How much is consolidated buildings at December 31, 2013

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