What carrying amount of investment in associate at year-end

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Reference no: EM132811777

Problem 1: At the beginning of current year, BAD Company purchased 30,000 shares of OMENS Company's 200,000 outstanding ordinary shares for 7,000,000. On that date, the carrying amount of the acquired shares on OMENS' books was 3,900,000. BAD attributed the excess of cost over the carrying amount to patent. The patent has a total useful life from its purchase of 15 years, with a remaining useful life of 10 years from the date of acquisition. During the current year, BAD's officers gained a majority on OMENS' board of directors. BAD's reported earnings of 6,000,000 for the current year and declared and paid dividends of 3,500,000 at year end. OMENS also reported earnings of 7,500,000 for the current year and declared and paid dividends of 5,000,000 at year end. What is the carrying amount of the investment in associate at year-end?

Reference no: EM132811777

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