CONCEPTS IN FED.TAX.,2020-W/ACCESS
CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN: 9780357110362
Author: Murphy
Publisher: CENGAGE L
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Hello tutor please need answer this accounting question

On January 1, 2014, Brendan, Inc., reports net assets
of $896,400 although equipment (with a four-year life) having a
book value of $497,000 is worth $560,000 and an unrecorded
patent is valued at $48,400. Hope Corporation pays $806,240 on
that date for an 80 percent ownership in Brendan. If the patent is
to be written off over a 10-year period, at what amount should it
be reported on consolidated statements at December 31, 2015?
a. $38,720.
b. $43,560.
c. $30,976.
d. $34,848.
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Transcribed Image Text:On January 1, 2014, Brendan, Inc., reports net assets of $896,400 although equipment (with a four-year life) having a book value of $497,000 is worth $560,000 and an unrecorded patent is valued at $48,400. Hope Corporation pays $806,240 on that date for an 80 percent ownership in Brendan. If the patent is to be written off over a 10-year period, at what amount should it be reported on consolidated statements at December 31, 2015? a. $38,720. b. $43,560. c. $30,976. d. $34,848.
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