Jaynes Inc

question 82

Essay

Jaynes Inc. acquired all of Aaron Co.'s common stock on January 1, 2010, 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 is assigned to an unrecorded patent to be amortized over ten years.
What balance would Jaynes' Investment in Aaron Co. account have shown on December 31, 2010, when the equity method was applied for this acquisition?

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Definitions:

Pay Gap

The disparity in earnings between different groups of people, often highlighted between genders, ethnicities, or other demographic categories.

Gender Pay Gap

The average difference in payment or income between male and female employees for doing the same job or jobs of equal value.

Equal Pay Act

A law aimed at abolishing wage disparity based on sex by ensuring that men and women receive equal pay for equal work.

Political Response

Actions or strategies adopted by individuals or organizations to navigate, influence, or respond to political environments and regulations.