Answered

Welcome to Westonci.ca, your ultimate destination for finding answers to a wide range of questions from experts. Get quick and reliable answers to your questions from a dedicated community of professionals on our platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

On January 1, 2020, Grand Haven, Inc., reports net assets of $862,150 although equipment (with a four-year remaining life) having a book value of $484,000 is worth $551,750 and an unrecorded patent is valued at $45,000. Van Buren Corporation pays $779,920 on that date to acquire an 80 percent equity ownership in Grand Haven. If the patent has a remaining life of nine years, at what amount should the patent be reported on Van Buren's consolidated balance sheet at December 31, 2021

Sagot :

abiolataiwo2015

Answer:

$35,000

Explanation:

Calculation for what amount should the patent be reported on Van Buren's consolidated balance sheet at December 31, 2021.

Unrecorded patent is valued at $45,000

Less Amortization for 2 years (9 years remaining life) ($10,000)

(45,000/9 years*2)

Patent reported $35,000

($45,000-$10,000)

Therefore the amount of patent that should be reported on Van Buren's consolidated balance sheet at December 31, 2021 is $35,000

Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.