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Home Q & A Board Other Fields Homework Help Business Accounting
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dwayned dwayned
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5 years ago
Crush Enterprises purchased 100,000 of the 200,000 outstanding shares of Carly Casualties for $4,500,000 on 1/1/16.  On the date of the investment, Carly had net assets with a book value of $9,500,000 and fair value of $10,000,000.  This difference is the result of equipment (remaining 10 year life) with a higher fair value than book value.  Crush has significant influence over Carly and will account for this investment using the equity method.  During the year, Carly declared dividends of $125,000 and reported Net Income of $1,200,000.  What is the balance in the Investment in Carly account at year end?
A) $5,037,500
B) $5,075,000
C) $5,012,500
D) $5,062,500
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Intermediate Accounting

Intermediate Accounting


Edition: 1st
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bergenstudent12bergenstudent12
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5 years ago
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dwayned Author
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#2
5 years ago
Commenting just to show my support for informative posts like this, keep it up 10/10
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#3
5 years ago
That helps more than you thinks, thanks for being so thoughtful
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