Investment in clem under the equity method

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Reference no: EM131214290

On January 3, 2009, Haskins Corporation acquired 40 percent of the outstanding common stock of Clem Company for $990,000. This acquisition gave Haskins the ability to significant influence over the investee. The book value of the acquired share was $790,000. Any excess cost over the underlining book value was assigned to a patent that was undervalued on Clam’s balance sheet. This patent has a remaining useful life of 10 years. For the year ended December 31, 2009, Clem reported net income of $260,000 and paid cash dividends of $80,000. At December 31, 2009, what should Haskins report as its investment in Clem under the equity method?

Reference no: EM131214290

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