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The Following Information Applies to Questions 39-40

question 19

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The following information applies to Questions 39-40
On January 1, 20X8, Ramon Corporation acquired 75 percent of Tester Company's voting common stock for $300,000. At the time of the combination, Tester reported common stock outstanding of $200,000 and retained earnings of $150,000, and the fair value of the noncontrolling interest was $100,000. The book value of Tester's net assets approximated market value except for patents that had a market value of $50,000 more than their book value. The patents had a remaining economic life of ten years at the date of the business combination. Tester reported net income of $40,000 and paid dividends of $10,000 during 20X8.
-Based on the preceding information,what balance will Ramon report as its investment in Tester at December 31,20X8,assuming Ramon uses the equity method in accounting for its investment?


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Memory Construction

Involves the process of forming new memories, incorporating both the encoding of information and its subsequent reconstruction.

Past Experiences

Events or situations that have occurred in one's life, which can influence beliefs, attitudes, and behaviors in the present.

Current Expectations

Refers to the beliefs or forecasts people currently hold about what will happen in the future based on present information.

Distorted

Pertains to something that has been altered or misrepresented from its original form, often leading to a false or misleading perception.

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