On 1-1-2015 broadhead corp purchased 30 of camp tech for 45


On 1-1-2015 Broadhead corp. purchased 30% of Camp Tech for $45 million. The purchase gave Broadhead significant influence over Camp Tech. On the date of purchase, the book value of Camp Tech's net assets was $75 million and their fair value was $90 million. The difference was because of the fair value of equipment exceeding book value, and the remaining useful life of this equipment was 5 years. In 2014, Camp Tech reported a net income of $75 million and declared and paid $20 million in divedends.

A) relative to its investment in Camp Tech, What is the amount of investment income reported by Broadhead corp. on it's year end 12-31-15 income statement is?

B) what is the total amount that Broadhead corp. would report for it's investment in Camp Tech on its 12-31-15 balance sheet?

C) Assuming Broadhead cannot exercise significant influence over Camp Tech and classifies this investment as available for sale, What is the total investment income reported by Broadhead Corp. on it's year end 12-31-15 income statement?

Request for Solution File

Ask an Expert for Answer!!
Financial Accounting: On 1-1-2015 broadhead corp purchased 30 of camp tech for 45
Reference No:- TGS01210188

Expected delivery within 24 Hours