Jaynes Inc

question 53

Essay

Jaynes Inc. acquired all of Aaron Co.'s common stock on January 1, 2020, by issuing 11,000 shares of $1 par value common stock. Jaynes' shares had a $17 per share fair value. On that date, Aaron reported a net book value of $120,000. However, its equipment (with a five-year remaining life)was undervalued by $6,000 in the company's accounting records. Any excess of consideration transferred over fair value of assets and liabilities acquired is assigned to an unrecorded patent to be amortized over ten years.The following figures came from the individual accounting records of these two companies as of December 31, 2020:
The following figures came from the individual accounting records of these two companies as of December 31, 2021:
What balance would Jaynes' Investment in Aaron Co. account have shown on December 31, 2021, when the equity method was applied for this acquisition?

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Definitions:

Condom Usage

The practice of using condoms as a contraceptive method and to reduce the risk of sexually transmitted infections.

Menstrual Cycle

A monthly cycle in female humans and other primates that involves hormonal changes, ovulation, and the potential for pregnancy, culminating in menstruation if pregnancy does not occur.

Childbirth

The process by which a baby is born, marking the end of pregnancy and involving labor and delivery.

Latex Condom

is a sheath made from latex used during sexual intercourse as a contraceptive and to reduce the risk of sexually transmitted infections (STIs).