Business
Business, 13.12.2021 21:10, Geo777

Kaye Company acquired 100% of Fiore Company on January 1, 2018. Kaye paid $1,000 excess consideration over book value, which is being amortized at $20 per year. There was no goodwill in the combination. Fiore reported net income of $400 in 2018 and paid dividends of $100. Assume the equity method is applied. How much equity income will Kaye report on its internal accounting records as a result of Fiore's operations?
a. $400
b. $300
c. $380
d. $280
e. $480

answer
Answers: 3

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Kaye Company acquired 100% of Fiore Company on January 1, 2018. Kaye paid $1,000 excess consideratio...

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