The book values of all assets and liabilities

Assignment Help Financial Accounting

Reference no: EM13966249

Year Reported Income Dividends

2011 $20,000 $8,000

2012 30,000 16,000

2013 24,000 9,000

On Barker's financial records, the book values of all assets and liabilities are the same as their fair values. Any excess cost from either purchase relates to identifiable intangible assets. For each purchase, the excess cost is amortized over 15 years. Amortization for a portion of a year should be based on months.

a. On comparative income statements issued in 2014 for the years of 2011, 2012, and 2013, what would Smith report as its income derived from this investment in Barker?

b. On a balance sheet as of December 31, 2013, what should Smith report as its investment in Barker?

Reference no: EM13966249

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