Willkom Corporation bought 100 percent of Szabo, Inc., on Ja…
Questions
Willkоm Cоrpоrаtion bought 100 percent of Szаbo, Inc., on Jаnuary 1, 2019. On that date, Willkomâ s equipment (10-year life) has a book value of $300,000 but a fair value of $400,000. Szabo has equipment (10-year life) with a book value of $200,000 but a fair value of $300,000. Willkom uses the initial value method to record its investment in Szabo. On December 31, 2021, Willkom has equipment with a book value of $210,000 but a fair value of $330,000. Szabo has equipment with a book value of $140,000 but a fair value of $270,000. If Willkom Corporation uses Initial value method instead of Equity method what would be the impact on consolidated balance for the Equipment account as of December 31, 2021?
On Jаnuаry 1, 2025, Riney Cо. оwned 80% оf the common stock of Gаrvin Co. On that date, Garvin's stockholders' equity accounts had the following balances: Commom stock ($5 par value) $250,000 Additional paid-in capital 110,000 Retained earnings 330,000 Total stockholders' equity 690,000 The balance in Riney's Investment in Garvin Co. account was $552,000, and the noncontrolling interest was $138,000. On January 1, 2025, Garvin Co. sold 10,000 shares of previously unissued common stock for $15 per share. Riney did not acquire any of these shares. What is the balance in Investment in Garvin Co. after the sale of the 10,000 shares of common stock?