question archive On January 1 2020, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing, Inc, for a soal of S1440
On January 1 2020, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing, Inc, for a soal of S1440
Subject:BusinessPrice: Bought3
On January 1 2020, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing, Inc, for a soal of S1440.000 In cash and other consideration. At the acquisition date, Smashing hod common stock of $870.000 retained earnings of $420,000 and a non controlling interest for value of $350.000 Corgan attributed the excess of fair value over Smashing's book value to various covenants with a year remaining life. Corgan uses the equity method to account for its investment in Smashing During the next two years, Smashing reported the following: Inventory Dividends Purchases from Het Income Declared Com 2020 $320,00 $52,00 $220,00 2021 120,000 200,000 Corgen els inventory to Smashing using a 60 percent markup on cost. At the end of 2020 end 2021 40 percent of the current year purchases remain in Smashing's very .. Compute the equity method balance in Corgan's Investment in Smashing, Inc, accounts of December 31, 2021 bPrepare the worksheet adjustments for the December 31, 2021. consolidation of Corgon and Smashing Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required Compute the equity method balance in Corgan's Investment in Smashing, Inc, account as of December 31, 2021. investment balance 12/3121 $ 1,735,800
