Exhibit 13-2 On January 1, 2014, the Cluzt Company purchased 30% of the 1,000,000 shares of Nancy's common stock for $15,000,000 when 30% of Nancy's net assets totaled $12,000,000. The excess purchase price over the underlying assets was attributable to undervalued depreciable plant assets with a remaining useful life of ten years. Nancy reported net income of $8,000,000 and paid cash dividends of $2,000,000 during 2014.
-Refer to Exhibit 13-2. The investment in Nancy Company stock should be reported on Clutz's December 31, 2014, balance sheet at

Question

Quizplus · Accepted Answer

The Answer of Exhibit 13-2 On January 1, 2014, the Cluzt Company purchased 30% of the 1,000,000 shares of Nancy's common stock for $15,000,000 when 30% of Nancy's net assets totaled $12,000,000. The excess purchase price over the underlying assets was attributable to undervalued depreciable plant assets with a remaining useful life of ten years. Nancy reported net income of $8,000,000 and paid cash dividends of $2,000,000 during 2014.
-Refer to Exhibit 13-2. The investment in Nancy Company stock should be reported on Clutz's December 31, 2014, balance sheet at

Exhibit 13-2 on January 1, 2014, the Cluzt Company Purchased