On January 1st 2011, Green Corp purchased 20% of the outstanding voting common stock of...
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Accounting
On January 1st 2011, Green Corp purchased 20% of the outstanding voting common stock of Gold Company for $300000. The book value of the acquired shares was $275000. The excess of cost over book value is attributable to an intangible asset on Gold's books that was undervalued and had a remaining useful life of 5 years. For the year ended December 31st 2011, Gold reported net income of $125000 and paid cash dividends of $25000. What is the carrying value of Greens investment in Gold at December 31st 2011?
A. $320,000 B. $300,000 C. $315,000 D. $295,000
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