Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

تمرين 54

On January 3, 2011, Haskins Corporation acquired 40 percent of the outstanding common stock of Clem Company for $990,000.This acquisition gave Haskins the ability to exercise significant influence over the investee.The book value of the acquired shares was $790,000.Any excess cost over the underlying book value was assigned to a patent that was undervalued on Clem's balance sheet.This patent has a remaining useful life of 10 years.For the year ended December 31, 2011, Clem reported net income of $260,000 and paid cash dividends of $80,000.At December 31, 2011, what should Haskins report as its investment in Clem under the equity method