ACC-690 Module 6-2 Quiz Question # 12 Jans Inc, acquired all of the outstanding common stock of Tysk Corp. on January 1, 2011, for $ 372,000.

ACC-690

Module 6-2

Quiz

Question # 12

 Jans Inc, acquired all of the outstanding common stock of Tysk Corp. on January 1, 2011, for $ 372,000. Equipment with a 10 year life was undervalued on Tysk’s financial records by $ 46,000. Tysk also owned an unrecorded  customer list with an assessed fair value of $ 67,000 an and estimated remaining life of five years. Tysk earned reported net income of $ 180,000 in 2011 and $ 216,000 in 2012. Dividends  of $ 70,000 were paid in each of these two years. Selected account balances as of December 31, 2013, for the two companies follows:

                                                            Jans                             Tysk

 Revenues                                   $ 1,080,000              $    840,000

 Expenses                                       480,000                       600,000

 Investment income                        Not given                         0

 Retained earnings, 1/1/13             840,000                       600,000

 Dividends paid                                132,000                          70,000

 If the equity method had been applied, what would be the investment in Tysk Corp. account balance within the records of Jans at the end of 2013?

 0 $ 372,000

 0 $ 612,100

 0 $ 844,150

 0 $ 744,000

 0 $ 774,150

 
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"