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    Calculate Faster's book value and purchase price

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    Details: Because Leeds Corporation has decided to purchase Emily and Richard's 80% ownership of Faster Distribution Company for $90,000 in excess of book value, complete the following tasks:

    Calculate Faster's book value and purchase price.
    Use the journal entries to record the purchase of Faster at date of acquisition and show the worksheet elimination of Faster's equity.

    Calculate Leeds' portion of profits at the end of the first year, assuming Faster's profits are $65,000.

    © BrainMass Inc. brainmass.com June 3, 2020, 11:06 pm ad1c9bdddf
    https://brainmass.com/business/accounting/calculate-fasters-book-value-purchase-price-263594

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    Solution Summary

    The solution calculates Faster's book value and purchase price. The portion of profits at the end of the first year is determined.

    $2.19

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