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Your Skills SE On January 1, 2017, James Company purchased 100 percent of the outstanding...

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Accounting

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Your Skills SE On January 1, 2017, James Company purchased 100 percent of the outstanding voting stock of N Inc, for $1,000,000 in cash and other consideration. At the purchase date, Nolan had comm $500,000 and retained olan, on stock of and retained earnings of $185,000. James attributed the excess of acquisition-date fair over Nolan's book value to a trade name with an estimated 25-year remaining useful life. James uses the equity method to account for its investment in Nolan. During the next two years, Nolan reported the following: Dividends Declared Inventory Transfers to James at Transfer Price Income 2017 $78,000 $25,000 2018 85,000 27,000 $190,000 210,000 Nolan sells inventory to James after a markup based on a gross profit rate. At the end of 2017 and 2018, 30 percent of the current year purchases remain in James's inventory

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