Homework Answers
| Acquisition price of Martes | 768000 | |
| Less: Acquired net assets (book value) | 634000 | =(4134000-964000)*20% |
| Excess cost over book value to patent | 134000 | |
| Annual amortization | 13400 | |
| Acquisition price | 768000 | |
| Income accrual-2017 | 39600 | =198000*20% |
| Income accrual-2018 | 50040 | =250200*20% |
| Amortization-2017 | -13400 | |
| Amortization-2018 | -13400 | |
| Dividends 2017 | -18000 | =90000*20% |
| Dividends 2018 | -18000 | =90000*20% |
| Domingo's Investment in Martes, Inc., at December 31, 2018 | 794840 | |
| Option C $794,840 is correct |
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In January 2017, Domingo, Inc., acquired 20 percent of the outstanding common stock of Martes, Inc.,...
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6 and 7 show solution
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6 and 7 show solution
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