Fair market value, Beginning January 1, 2013 Sharp acquired

Fair market value

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Reference no: EM13342490

Beginning January 1, 2013 Sharp acquired 80% of Tippy Co for $1,360,000 (fair market value).
Book value of Tippy Co was $1,100,000 & assets/liabilites all at fair value. The exception was a patent
that had a remaining useful life of 7 years which was undervalued on the books. Net income for Tippy Co for 2013 was
$175,000 and paid $35,000 in dividends. Net income for Tippy Co for 2014 was $180,000, $50,000 in dividends were paid.

1. Provide journal entry for the acquisition on January 2013
2. Provide book value of the patent on 1/1/14
3. Provide the book value of investment in Tippy Co account for Sharp as of 12/31/14 after consolidating entries

Reference no: EM13342490

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