Dodge, Incorporated acquires 15% of Gates Corporation on January1, 2013, for $105,000 when the book value of Gates was $600,000.During 2013 Gates reported net income of $150,000 and paiddividends of $50,000. On January 1, 2014, Dodge purchased anadditional 25% of Gates for $200,000. Any excess cost over bookvalue is attributable to goodwill with an indefinite life. Thefair-value method was used during 2013 but Dodge has deemed itnecessary to change to the equity method after the second purchase.During 2014 Gates reported net income of $200,000 and reporteddividends of $75,000.

The balance in the investment account at December 31, 2014, is













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