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Business, 30.01.2022 09:20 Claysn9094

On january 3, 2021, matteson corporation acquired 40 percent of the outstanding common stock of o’toole company for $1,160,000. This acquisition gave matteson the ability to exercise significant influence over the investee. The book value of the acquired shares was $820,000. Any excess cost over the underlying book value was assigned to a copyright that was undervalued on its balance sheet. This copyright has a remaining useful life of 10 years. For the year ended december 31, 2021, o’toole reported net income of $260,000 and declared cash dividends of $50,000. On december 31, 2021, what should matteson report as its investment in o’toole under the equity method?.

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On january 3, 2021, matteson corporation acquired 40 percent of the outstanding common stock of o’to...
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