Calculate quakes income from tremor for 2011

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Reference no: EM13554698

Quake Corporation paid $1,680,000 for a 30 percent interest in Tremor Corporation's outstanding voting stock on January 1, 2011. The book values and fair values of Tremor's assets and liabilities on January 1, along with amortization data, are as follows (in thousands):

1623_Calculate Quakes income from Tremor for 2011.PNG

Tremor Corporation reported net income of $1,200,000 for 2011 and paid dividends of $600,000.
REQUIRED

1. Prepare a schedule to allocate the investment fair values/book value differentials relating to Quake's investment in Tremor.

2. Calculate Quake's income from Tremor for 2011.

3. Determine the balance of Quake's Investment in Tremor account at December 31,2011.

Reference no: EM13554698

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