Compute the amount of investment income


Brindle Company purchased 100 percent of Monroe Company's voting common stock for $648,000 on January 1, 20X4. At that date, Monroe reported assets of $690,000 and liabilities of $230,000. The book values and fair values of Monroe's assets were equal except for land, which had a fair value $108,000 greater than book value, and equipment, which had a fair value $80,000 greater than book value. The remaining economic life of all depreciable assets at January 1, 20X4, was five years. The amount of the differential assigned to goodwill is not impaired. Monroe reported net income of $68,000 and paid dividends of $34,000 in 20X4.

Compute the amount of investment income to be reported by Brindle for 20X4.

 

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Accounting Basics: Compute the amount of investment income
Reference No:- TGS048276

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