Business, 10.04.2020 16:50 ajbrock1004
The summarized balance sheets of Cullumber Company and Vaughn Company as of December 31, 2021 are as follows:
Cullumber Company
Balance Sheet
December 31, 2021
Assets $2440000
Liabilities $310000
Capital stock 1220000
Retained earnings 910000
Total equities $2440000
Vaughn Company
Balance Sheet
December 31, 2021
Assets $1840000
Liabilities $420000
Capital stock 1170000
Retained earnings 250000
Total equities $1840000
If Cullumber Company acquired a 20% interest in Vaughn Company on December 31, 2021 for $291500 and during 2022 Vaughn Company had net income of $151000 and paid a cash dividend of $61000, applying the fair value method would give a debit balance in the Equity Investments (Vaughn) account at the end of 2022 of
Answers: 2
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The summarized balance sheets of Cullumber Company and Vaughn Company as of December 31, 2021 are as...
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