Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. pell company acquired 80% of demers company for $5

pell company acquired 80% of demers company for $500,000 on january 1, 2019. demers reported...

90.2K

Verified Solution

Question

Accounting

Pell Company acquired 80% of Demers Company for $500,000 on January 1, 2019. Demers reported common stock of $300,000 and retained earnings of $210,000 on that date. Equipment was undervalued by $30,000 and buildings were undervalued by $40,000, each having a 10-year remaining life. Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life. Based on an annual review, goodwill has not been impaired. Demers earns income and pays dividends as follows: 2019 2020 2021 Net income $ 100,000 $ 120,000 $ 130,000 Dividends 40,000 50,000 60,000 Assume the partial equity method is applied. What is the consolidated balance of the investment in Demers account at December 31, 2021

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

Statistics
1.2K views

ath of 0 2 Some spots are already filled in 2 2 121 9 122...

Basic Math
1.2K views

Set up the system of equations that are needed to be solved using Lagrange multipliers in...

Chemistry
1.2K views

CH 15 ± Using the Equilibrium Constant 1) Part A Initially, only A and B are present, each at...

Physics
1.2K views

Thermodynamic question Derive relation between saturated vapor pressure and temperature. and apply the relation to the case...

Basic Math
1.2K views

Consider the following differential equation and seek a power series solu-tion centered at ro =...

Statistics
1.2K views

rejected a mean of 2 0 circuit boards per batch produced with a variance of...

Statistics
1.2K views

rrelation and Hours spent studying x Test score y Find the equation of the regression...

Algebra
1.2K views

4 5i 6 10i

Accounting
1.2K views

During the period, HPE Inc. had the following transactions: sold $200 of services on account...

Finance
1.2K views

Chuan and Pooh run a fund called ChuanPooh. The expected return of ChuanPooh is 14%...

Accounting
1.2K views

A corporation creates a sinking fund in order to have $360,000 to replace some machinery...

Finance
1.2K views

23 ?Based on the simplex table the pivot number is (2) X X2 Si S...