Friday 16 November 2012

Bowerbird Corporation purchased a 70% interest in Stage Corporation on June 1, 2006 at a purchase price of $390,400. On this date, Stage?s book values were equal to its fair values except for an unrecorded copyright, and its stockholders? equity consisted of $290,000 of Common Stock and $210,000 of Retained Earnings. All cost-book differentials were attributed to the copyright, which had an estimated economic life of ten years. 10) During 2006, Stage earned $120,000 of net income earned uniformly throughout the year and paid $6,000 of dividends on March 1 and another $6,000 on September 1. The amortization expense recorded for the copyright in 2006 is: $315. $560. $815. $960.

Bowerbird Corporation purchased a 70% interest in Stage Corporation on June 1, 2006 at a purchase price of $390,400. On this date, Stage?s book values were equal to its fair values except for an unrecorded copyright, and its stockholders? equity consisted of $290,000 of Common Stock and $210,000 of Retained Earnings. All cost-book differentials were attributed to the copyright, which had an estimated economic life of ten years.

 

10) During 2006, Stage earned $120,000 of net income earned uniformly throughout the year and paid $6,000 of dividends on March 1 and another $6,000 on September 1.

The amortization expense recorded for the copyright in 2006 is:

$315.

$560.

$815.

$960.



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