8, on June 30, 2018, Brooks, Inc. purchased 80% of Glacier Corporation for $560,000. On that date the book value of the net assets of Glacier amounted to $450,000. Based on the appraisal done at the time of the purchase, all assets and liabilities of Glacier hac book values equal to their fair values except the following: Receivables Land Book Value Fair Value $110,000 $130,000 90,000 75,000
| Under sophisticated equity method a company records investment income equal to its (parent ownership)interest *the subsidiary income reported and then subtracts amortisation of the excess related to the purchase price of the investment. |
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