asked 144k views
1 vote
Anderson acquires 10 percent of the outstanding voting shares of barringer on january 1, 2013, for $106,340 and categorizes the investment as an available-for-sale security. an additional 20 percent of the stock is purchased on january 1, 2014, for $238,250, which gives anderson the ability to significantly influence barringer. barringer has a book value of $897,000 at january 1, 2013, and records net income of $192,000 for that year. barringer declared and paid dividends of $68,000 during 2013. the book values of barringer’s asset and liability accounts are considered as equal to fair values except for a copyright whose value accounted for anderson’s excess cost in each purchase. the copyright had a remaining life of 16 years at january 1, 2013.anderson acquires 10 percent of the outstanding voting shares of barringer on january 1, 2013, for $106,340 and categorizes the investment as an available-for-sale security. an additional 20 percent of the stock is purchased on january 1, 2014, for $238,250, which gives anderson the ability to significantly influence barringer. barringer has a book value of $897,000 at january 1, 2013, and records net income of $192,000 for that year. barringer declared and paid dividends of $68,000 during 2013. the book values of barringer’s asset and liability accounts are considered as equal to fair values except for a copyright whose value accounted for anderson’s excess cost in each purchase. the copyright had a remaining life of 16 years at january 1, 2013.

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User Darronz
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4 votes
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User Beryl
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