#13 On January 1, 20X8 Hamilton reported net a Hamilton\'s net assets were equal
ID: 2556867 • Letter: #
Question
#13 On January 1, 20X8 Hamilton reported net a Hamilton's net assets were equal except for land which had a fair van eported net assets of $460 000 The book values and fair values of book value and equipment which had a fair value of $80,000 more than 1, 20X8 the remaining economic life of all Hamilton's deprec year ending 20X8, Hamilton reported net income of $68,000 and paid di ch had a fair value of $108,000 more than 0,000 more than book value. As of January Hamilton's depreciable assets was five years. For the 3,000 and paid dividends of $34,000. On January 1, 20X8 Adams Company purchased 100 perc for $648,000. cd 100 percent of Hamilton's voting common stock Required: a. What amount did Adams report as "Income from inve ant did Adams report as "Income from investment in Hamilton" on its year ending 20X8 income statement? Show inputs/support for your answer What amount did Adams report as "Investment in Hamilton" on its 125 sheet? Show inputs/support for your answer. vvhat amount did Adams report as Goodwill on its consolidated balance sheet immediately after acquisition of Hamilton? Show inputs/support for your answer.Explanation / Answer
a. $68,000
Income from investment in Hamilton will be $68,000 as Adams Compnay has acquired 100% interest in Hamilton.
b. $662,000
c. Goodwill is 0.
Working:
Original investment made on Jan.1, 20X8 648000 Add:Income from Hamilton for 20X8 68000 716000 Less: Dividends received during 20X8 -34000 682000 Less: Amortization of excess of fair value -20000 Investment acount as at 12/31/X8 662000Related Questions
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