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What is the balance in cale investment in subsidiary account

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Reference no: EM131781674

Question -

On January 1, 2010 Cale Corp. paid $1,020,000 to acquire Kaltop Co.  Kaltop maintained separate incorporation.  Cale used  the equity method to account for the investment.  The following information is available for Kaltop's assets, liabilities, and stockholder's equity accounts:

                                            Book Value           Fair Value

Current Assets                       $120,000              $120,000

Land                                     72,000                  192,000

Building (20 yr life)                240,000                 268,000

Equipment (10 yr life)            540,000                 516,000

Current Liabilities                  24,000                  24,000

Long-Term Liabilities             120,000                 120,000

Common Stock                    228,000                

APIC                                   384,000

Retained Earnings                216,000

Kaltop earned net income for 2010 of $126,000 and paid dividends of $48,000 during the year.

  • The 2010 total amortization of allocations is calculated to be?
  • In Cale's accounting records, what amount would appear on December 31, 2010 for equity in subsidiary earnings?
  • What is the balance in Cale's Investment in subsidiary account at the end of 2010?

Reference no: EM131781674

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