Jaynes Inc $\text {The following figures came from the individual accounting records of these two companies of December 31, 2010}$

question 75

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.
$\text {The following figures came from the individual accounting records of these two companies of December 31, 2010}$
$\begin{array} { l r c } & \text { Jaynes Inc. } & \text { Aaron Co. } \\ \text { Revenues } & \$ 720,000 & \$ 276,000 \\ \text { Expenses } & 528,000 & 144,000 \\ \text { Investment income } & \text { Not given } & - \\ \text { Dividends paid } & 100,000 & 60,000 \\ & & \\ \text { The following figures came from the individual accounting records of these two } \\ \text { companies of December } 31,2011 & & \\ & \text { Jaynes Inc. } & \text { Aaron Co. } \\ \text { Revenues } & \$ 840,000 & \$ 336,000 \\ \text { Expenses } & 552,000 & 180,000 \\ \text { Investment income } & \text { Not given } & - \\ \text { Dividends paid } & 110,000 & 50,000 \\ \text { Equipment } & 600,000 & 360,000 \\ \text { Retained earnings, 12/31/11 balance } & 960,000 & 216,000 \end{array}$
-What balance would Jaynes' Investment in Aaron Co.account have shown on December 31,2010,when the equity method was applied for this acquisition?
An allocation of the acquisition value (based on the fair value of the shares issued)must first be made.

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Definitions:

Negative Symptoms

Features often found in certain mental illnesses, such as schizophrenia, that include a lack or decrease in the ability to function normally, like diminished emotional expression.

Exaggerated

Describes something made to appear larger, more significant, or more important than it actually is, often through overstatement or hyperbole.

Distorted

Twisted or misrepresented from the original form, often resulting in a misleading perception or concept.

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Proteins located in the brain that interact with the neurotransmitter dopamine, playing crucial roles in regulating mood, motivation, and reward.