On January 1, 2018, Brady Corp. purchased 30% of the voting common stock of Gronkowski Co., paying $2,200,000. Brady pro

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On January 1 2018 Brady Corp Purchased 30 Of The Voting Common Stock Of Gronkowski Co Paying 2 200 000 Brady Pro 1 (57.85 KiB) Viewed 54 times

On January 1, 2018, Brady Corp. purchased 30% of the voting common stock of Gronkowski Co., paying $2,200,000. Brady properly accounts for this investment using the equity method. At the time of the investment, Gronkowski's total stockholders' equity was $3,000,000. Brady gathered the following information about Gronkowski's assets and liabilities whose book values and fair values differed: Land Equipment (5-year life) Franchises (10-year life) Book Value $ 1,000,000 2,500,000 $ 0 Fair Value $ 1,500,000 3,000,000 $ 500,000