Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1,2022, patrick company purchased 60% o

On January 1,2022, Patrick Company purchased 60% of the common stock of Solomon...

90.2K

Verified Solution

Question

Accounting

On January 1,2022, Patrick Company purchased 60% of the common stock of Solomon Company for $180,000. On this date, Solomon had common stock, other paid-in capital, and retained earnings of $20,000,$60,000, and $120,000 respectively,
On January 1,2022, the only tangible asset of Solomon that was undervalued was land, which was worth $15,000 more than book value.
On January 1,2023, Patrick Company purchased an additional 30% of the common stock of Solomon Company for $140,000.
Net income and dividends for 2 years for Solomon Company were:
\table[[Net income for year,2022,2023],[Dividends, paid-in December,$50,000,$80,000
image

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

Chemistry
1.2K views

Write the balanced chemical equation for Dodecane and air in terms of major stable species with...

Electrical Engineering
1.2K views

Failure analysis aims to identify the causes of failure and failure may arise during the product...

Advance Math
1.2K views

Identify the average rate of change over the interval [-2,-1]

General Management
1.2K views

Given our current state of the world with COVID and most colleges and universities now operating in...

Biology
1.2K views

An ecosystem consists of all the living and nonliving things that exist and interact in...

Physics
1.2K views

A series LCR circuit is connected to an AC source of variable frequency When the...

Geometry
1.2K views

of each statement 11 If you go to the game then you will have a...

Algebra
1.2K views

a Work out in terms of the curved surface area of the frustum b Work...

Accounting
1.2K views

Ruben is awezente intends to all cutomers a special and prin...

Accounting
1.2K views

Compute the amount of goods available for sale, ending inventory, and cost of goods sold...

Accounting
1.2K views

Beacon Company is considering automating its production facility. The initial investment in automation would be...

Accounting
1.2K views

False Value Hardware began 2021 with a credit balance of $31,300 in the refund liability...