REFERENCE: Ref.03_06
Kaye Company acquired 100% of Fiore Company on January 1,2009.Kaye paid $1,000 excess consideration over book value which is being amortized at $20 per year.Fiore reported net income of $400 in 2009 and paid dividends of $100.
-Assume the partial equity method is used.In the years following acquisition,what additional worksheet entry must be made for consolidation purposes that is not required for the equity method?
I am not able to accept changes below.The balloons won't go away!
Definitions:
Economies of Scale
The economic benefits that businesses gain from their size of operations, where the expense per unit of production typically lowers as the scale increases.
Increasing Returns
A situation in which an increase in the scale of production results in a disproportionate increase in output, usually leading to lower average costs.
Suffer Losses
occurs when a business or individual incurs expenses that exceed their revenues.
Long-run
A period of time in economics during which all factors of production and costs are variable, allowing for full industry adjustment.
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