Business
Business, 07.10.2019 23:30, reesespowerade

On january 1, 2017, alison, inc., paid $89,000 for a 40 percent interest in hollister corporation’s common stock. this investee had assets with a book value of $254,000 and liabilities of $92,500. a patent held by hollister having a $8,600 book value was actually worth $43,100. this patent had a six-year remaining life. any further excess cost associated with this acquisition was attributed to goodwill. during 2017, holister earned income of $41,500 and declared and paid dividends of $14,000. in 2018, it had income of $70,700 and dividends of $19,000. during 2018, the fair value of allison’s investment in holister had risen from $100,700 to $109,780. a. assuming alison uses the equity method, what balance should appear in the investment in holister account as of december 31, 2018

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On january 1, 2017, alison, inc., paid $89,000 for a 40 percent interest in hollister corporation’s...

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