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On July 1, 2015, Truman Company Acquired A 70 Percent Interest In Atlanta Company

Submitted by • October 18, 2018

On July 1, 2015, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $720,000 in cash and equity securities. The remaining30 percent of Atlantas shares traded closely near an average price that totaled $290,000 both before and after Trumans acquisition.In reviewing its acquisition, Truman assigned a $100,000 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is anticipated to have a remaining life of five years.The following financial information is available for these two companies for 2015. In addition, the subsidiarys income was earned uniformly throughout the year. The subsidiary declared dividends quarterly.Truman AtlantaRevenues

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Voted by Simon Brooke

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