Acker Inc. bought 40% of Howell Co. on January 1, 2010 for $576,000. The equity method of accounting was used. The book value and fair value of the…
Acker Inc. bought 40% of Howell Co. on January 1, 2010 for $576,000. The equity method of accounting was used. The book value and fair value of the net assets of Howell on that date were $1,440,000. Acker began supplying inventory to Howell as follows:2010: Cost to Acker: $55,000, Transfer Price:$75,000, Amount held by Howell at year-end: $15,000. 2011:Cost to Acker: $70,000, Transfer Price:$110,000, Amount […]