Puddle Incorporated Purchased an 80% Interest in Soake Company,located in England.Puddle

question 31

Essay

Puddle Incorporated purchased an 80% interest in Soake Company,located in England.Puddle paid $1,560,000 on January 1,2014,at a time when the book values of Soake equaled the fair values.Any excess cost/book value differential was attributed to a patent with a five-year remaining useful life.Soake's books are kept in the functional currency,pounds.A summary of Soake's equity is shown below for the first year that Puddle had ownership interest.
Required:
Determine Puddle's income from Soake for 2014,and the balance of Puddle's Investment in Soake account at December 31,2014.Soake's books are kept in pounds,which is the functional currency.

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Definitions:

Relationship

Refers to a connection, whether emotional, social, or professional, that exists between individuals, groups, or entities, characterized by mutual interactions and dependence.

Variables

Elements, characteristics, or features that can change or vary in a research or experimental setting, influencing or reflecting the outcomes.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together, showing the strength and direction of a relationship.

Toes

The digits of the foot in humans and other animals, involved in locomotion and balance.