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_____ on 9/30/06, Pittco Acquired 75% of Stoneco's Outstanding Common

Question 50

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_____ On 9/30/06, Pittco acquired 75% of Stoneco's outstanding common stock for $600,000 cash. For 2006, Stoneco reported the following items:
_____ On 9/30/06, Pittco acquired 75% of Stoneco's outstanding common stock for $600,000 cash. For 2006, Stoneco reported the following items:   In addition, Pittco recorded amortization of cost in excess of book value in its general ledger for 2006 of $20,000. Assume non-push-down accounting is used. Under the equity method, what is the carrying value of the Investment account at 12/31/06? A)  $605,000 B)  $610,000 C)  $620,000 D)  $630,000 E)  $745,000 In addition, Pittco recorded amortization of cost in excess of book value in its general ledger for 2006 of $20,000. Assume non-push-down accounting is used. Under the equity method, what is the carrying value of the Investment account at 12/31/06?


A) $605,000
B) $610,000
C) $620,000
D) $630,000
E) $745,000

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