Business, 13.08.2019 02:30 smartoa

Sage, inc. bought 40% of adams corp.'s outstanding common stock on january 2, 1991, for $400,000. the carrying amount of adams' net assets at the purchase date totaled $900,000. fair values and carrying amounts were the same for all items except for plant and inventory, for which fair values exceeded their carrying amounts by $90,000 and $10,000, respectively. the plant has an 18-year life. all inventory was sold during 1991. during 1991, adams reported net income of $120,000 and paid a $20,000 cash dividend. what amount should sage report in its income statement from its investment in adams for the year ended december 31, 1991?

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Sage, inc. bought 40% of adams corp.'s outstanding common stock on january 2, 1991, for $400,000. th...

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