Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on 1/1/20, coke co. paid $2,800,000 to acquire all

On 1/1/20, Coke Co. paid $2,800,000 to acquire all of the common stock of Dodo...

70.2K

Verified Solution

Question

Accounting

On 1/1/20, Coke Co. paid $2,800,000 to acquire all of the common stock of Dodo Corp. On that date, Dodo's equity included $1,000,000 capital stock and $1,600,000 of retained earnings. An appraisal of Dodo's assets identified a patent that had a market value of $140,000 and a life of 5 years that was unrecorded. Dodo's reported earnings for 2020 totaled $512,000 and it paid $160,000 of dividends during the year. The amortization of allocations related to the investment was $28,000. Coke's net income, not including the investment, was $3,310,000, and it paid dividends of $950,000.

How much goodwill exists on 1/1/20?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

NEW PROJECT ANALYSIS You must evaluate a proposal to buy a new milling machine. The base price...

Accounting
1.2K views

The balances of Adventure Travel Service’s accounting equation items for the year ended April 30, 2019,...

Advance Math
1.2K views

Solve the given integral equation for y(t): y(t) + 10 ?(0 to t)  cos(5(t??))y(?)d? = 6t

Geometry
1.2K views

7 10 H D P V y 60 8 X y 60 go y 7...

Statistics
1.2K views

Cards: What is the probability of drawing a Queen or an 8 from a regular...

Algebra
1.2K views

If y log5 0 2 what is y Provide your answer below

Algebra
1.2K views

27x 4 v 5 32x 6 v 7 24xv 5 4x 2 v 3 mplify...

Accounting
1.2K views

Can i have the answer of this exercise I need the correct answer for the...

Accounting
1.2K views

Assume the prices are rising nowadays. Cost of inventory in your companys balance sheet is...

Accounting
1.2K views

Berman \& Jaccor Corporation's current sales and partial balance sheet are shown below. intermediate calculations....

Accounting
1.2K views

Calgary Industries is preparing a budgeted income statement for 2018. Predicted sales for the year...

Finance
1.2K views

If a firm has constant returns to scale, then 0 A. if the firm increases...