Business, 06.04.2021 01:00 EMscary4996

Assume Manav Corporation purchased 25 % of the outstanding common stock of Devon Inc. on January 1, 2020 for $1,000,000. At the date of acquisition of the stock, Devon's total net assets had a fair value of $3,500,000 and a book value of $3,100,000. The undervalued assets have a remaining useful life of 5 years. Assume Devon, Inc. earned $100,000 and paid $50,000 of dividends. All of the goodwill was related to a Patent that was worthless at the end of the year. Required:
Compute the amount that would be reported for the investment on Manav Corporation's financial statements at December 31, 2021. Investment amount $236,000.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 05:30, 2023greenlanden

The hartman family is saving $400 monthly for ronald's college education. the family anticipates they will need to contribute $20,000 towards his first year of college, which is in 4 years .which best explain s whether the family will have enough money in 4 years ?

Answers: 1

continue

Business, 22.06.2019 10:00, emwemily

Frolic corporation has budgeted sales and production over the next quarter as follows. the company has 4100 units of product on hand at july 1. 10% of the next months sales in units should be on hand at the end of each month. october sales are expected to be 72000 units. budgeted sales for september would be: july august september sales in units 41,500 53,500 ? production in units 45,700 53,800 58,150

Answers: 3

continue

Business, 22.06.2019 12:10, huangjianhe135

The following transactions occur for badger biking company during the month of june: a. provide services to customers on account for $32,000. b. receive cash of $24,000 from customers in (a) above. c. purchase bike equipment by signing a note with the bank for $17,000. d. pay utilities of $3,200 for the current month. analyze each transaction and indicate the amount of increases and decreases in the accounting equation. (decreases to account classifications should be entered as a negative.)

Answers: 1

continue

Business, 22.06.2019 18:00, mcckenziee

When peter metcalf describes black diamond’s manufacturing facility in china as a “greenfield project,” he means that partnered with a chinese company to buy the plant . of all market entry strategies, this one carries the lowest risk. because black diamond manufactures its outdoor sports products outside the united states, what risks must its managers be aware of?

Answers: 1

continue

You know the right answer?

Assume Manav Corporation purchased 25 % of the outstanding common stock of Devon Inc. on January 1,...