Common stocks


On January 1, 2013, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction Company for $320 million cash. At the date of acquisition of the stock, Lake''s net assets had a fair value of $1,000 million. Their book value was $900 million. The difference was attributable to the fair value of Lake''s buildings and its land exceeding book value, each accounting for one-half of the difference. Lake’s net income for the year ended December 31, 2013, was $160 million. During 2013, Lake declared and paid cash dividends of $20 million. The buildings have a remaining life of 10 years

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Financial Accounting: Common stocks
Reference No:- TGS01054670

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