Reference no: EM13947727
Roosevelt Corporation acquires 55% of DePaul Company for $40,000,000 on January 1, Year 6. At the time of acquisition, DePaul has total net assets with Fair value of $25,000,000. For the years ended Dec. 31st, Year and Dec. 31st Year 7, DePaul reports net income (loss) and pays dividends as shown here:
Year 6:
Net income (loss) $1,500,000
Dividends paid: $1,200,050
Year 7
Net income (loss): $(500,000)
Dividends paid: $ 950,100
Compute the value of Roosevelt Corporation’s investment in DePaul Company as of Dec 31, Year 7 under the equity method
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: Roosevelt Corporation acquires 55% of DePaul Company for $40,000,000 on January 1, Year 6. At the time of acquisition, DePaul has total net assets with Fair value of $25,000,000. Compute the value of Roosevelt Corporation’s investment in DePaul Compa..
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