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Bassett Inc. acquired all of the outstanding common stock of…

Posted byAnonymous June 23, 2021September 7, 2023

Questions

Bаssett Inc. аcquired аll оf the оutstanding cоmmon stock of Brinkman Corp. on January 1, 2019, for $422,000. Equipment with a ten-year life was undervalued on Brinkman’s financial records by $48,000. Brinkman also owned an unrecorded customer list with an assessed fair value of $71,000 and an estimated remaining life of five years.Brinkman earned reported net income of $185,000 in 2019 and $226,000 in 2020. Dividends of $75,000 were paid in each of these two years. Selected account balances as of December 31, 2021, for the two companies follow.     Bassett Brinkman Revenues $ 1,120,000   $ 860,000   Expenses   500,000     600,000   Investment income   Not given     0   Retained earnings, 1/1/21   850,000     650,000   Dividends paid   132,000     80,000     If the partial equity method had been applied, what was 2021 consolidated net income?                         A)    $260,000.                        B)    $620,000.            C)    $861,000.            D)    $880,000.            E)    $1,291,000.

Bаssett Inc. аcquired аll оf the оutstanding cоmmon stock of Brinkman Corp. on January 1, 2019, for $422,000. Equipment with a ten-year life was undervalued on Brinkman’s financial records by $48,000. Brinkman also owned an unrecorded customer list with an assessed fair value of $71,000 and an estimated remaining life of five years.Brinkman earned reported net income of $185,000 in 2019 and $226,000 in 2020. Dividends of $75,000 were paid in each of these two years. Selected account balances as of December 31, 2021, for the two companies follow.     Bassett Brinkman Revenues $ 1,120,000   $ 860,000   Expenses   500,000     600,000   Investment income   Not given     0   Retained earnings, 1/1/21   850,000     650,000   Dividends paid   132,000     80,000     If the partial equity method had been applied, what was 2021 consolidated net income?                         A)    $260,000.                        B)    $620,000.            C)    $861,000.            D)    $880,000.            E)    $1,291,000.

Bаssett Inc. аcquired аll оf the оutstanding cоmmon stock of Brinkman Corp. on January 1, 2019, for $422,000. Equipment with a ten-year life was undervalued on Brinkman’s financial records by $48,000. Brinkman also owned an unrecorded customer list with an assessed fair value of $71,000 and an estimated remaining life of five years.Brinkman earned reported net income of $185,000 in 2019 and $226,000 in 2020. Dividends of $75,000 were paid in each of these two years. Selected account balances as of December 31, 2021, for the two companies follow.     Bassett Brinkman Revenues $ 1,120,000   $ 860,000   Expenses   500,000     600,000   Investment income   Not given     0   Retained earnings, 1/1/21   850,000     650,000   Dividends paid   132,000     80,000     If the partial equity method had been applied, what was 2021 consolidated net income?                         A)    $260,000.                        B)    $620,000.            C)    $861,000.            D)    $880,000.            E)    $1,291,000.

Bаssett Inc. аcquired аll оf the оutstanding cоmmon stock of Brinkman Corp. on January 1, 2019, for $422,000. Equipment with a ten-year life was undervalued on Brinkman’s financial records by $48,000. Brinkman also owned an unrecorded customer list with an assessed fair value of $71,000 and an estimated remaining life of five years.Brinkman earned reported net income of $185,000 in 2019 and $226,000 in 2020. Dividends of $75,000 were paid in each of these two years. Selected account balances as of December 31, 2021, for the two companies follow.     Bassett Brinkman Revenues $ 1,120,000   $ 860,000   Expenses   500,000     600,000   Investment income   Not given     0   Retained earnings, 1/1/21   850,000     650,000   Dividends paid   132,000     80,000     If the partial equity method had been applied, what was 2021 consolidated net income?                         A)    $260,000.                        B)    $620,000.            C)    $861,000.            D)    $880,000.            E)    $1,291,000.

Bаssett Inc. аcquired аll оf the оutstanding cоmmon stock of Brinkman Corp. on January 1, 2019, for $422,000. Equipment with a ten-year life was undervalued on Brinkman’s financial records by $48,000. Brinkman also owned an unrecorded customer list with an assessed fair value of $71,000 and an estimated remaining life of five years.Brinkman earned reported net income of $185,000 in 2019 and $226,000 in 2020. Dividends of $75,000 were paid in each of these two years. Selected account balances as of December 31, 2021, for the two companies follow.     Bassett Brinkman Revenues $ 1,120,000   $ 860,000   Expenses   500,000     600,000   Investment income   Not given     0   Retained earnings, 1/1/21   850,000     650,000   Dividends paid   132,000     80,000     If the partial equity method had been applied, what was 2021 consolidated net income?                         A)    $260,000.                        B)    $620,000.            C)    $861,000.            D)    $880,000.            E)    $1,291,000.

Bаssett Inc. аcquired аll оf the оutstanding cоmmon stock of Brinkman Corp. on January 1, 2019, for $422,000. Equipment with a ten-year life was undervalued on Brinkman’s financial records by $48,000. Brinkman also owned an unrecorded customer list with an assessed fair value of $71,000 and an estimated remaining life of five years.Brinkman earned reported net income of $185,000 in 2019 and $226,000 in 2020. Dividends of $75,000 were paid in each of these two years. Selected account balances as of December 31, 2021, for the two companies follow.     Bassett Brinkman Revenues $ 1,120,000   $ 860,000   Expenses   500,000     600,000   Investment income   Not given     0   Retained earnings, 1/1/21   850,000     650,000   Dividends paid   132,000     80,000     If the partial equity method had been applied, what was 2021 consolidated net income?                         A)    $260,000.                        B)    $620,000.            C)    $861,000.            D)    $880,000.            E)    $1,291,000.

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