On 1-1-0-2007 Gall purchased 40% of Gull Corporation for $30,000. At that time, Gull's owners' equity was $4,000, and Gull had the following assets with market values exceeding book value by the following amounts:
Land $20,000
Buildings $30,000 (10 years life remaining)
Patent 10,000 (5 years life remaining)
Gull earned $10,000 in 2007 and paid $20,000 dividends. We amortize all intangibles over 5 years. Calculate the 2007 ending balance in the Investment in Gull account.

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The Answer of On 1-1-0-2007 Gall purchased 40% of Gull Corporation for $30,000. At that time, Gull's owners' equity was $4,000, and Gull had the following assets with market values exceeding book value by the following amounts:
Land $20,000
Buildings $30,000 (10 years life remaining)
Patent 10,000 (5 years life remaining)
Gull earned $10,000 in 2007 and paid $20,000 dividends. We amortize all intangibles over 5 years. Calculate the 2007 ending balance in the Investment in Gull account.

On 1-1-0-2007 Gall Purchased 40% of Gull Corporation for $30,000