Kaye Company acquired 100% of Fiore Company on January 1, 2013. Kaye paid $1,000 excess consideration over book value which is being amortized at $20 per year. Fiore reported net income of $400 in 2013 and paid dividends of $100. Assume the initial value method is used. In the year subsequent to acquisition, what additional worksheet entry must be made for consolidation purposes that is not required for the equity method?
Definitions:
Product Life Cycle
The progression of a product through different stages from introduction to growth, maturity, and decline in the market.
Laggard
Term used to describe a person, organization, or entity that is slow to adopt new technologies, practices, or innovations, often resistant to change.
Product Mix
The total range of products that a company offers to its customers, encompassing the diversity and variety of product lines and items available.
Maturity Stage
A phase in the product lifecycle where sales growth slows or levels off, and the product is established in the market.
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