In early January 2023, Ayayai Inc., a private enterprise that applies ASPE, purchased 40% of the common shares of Washi Corp. for $303,000. Ayayai was now able to exercise considerable influence in decisions made by Washi's management. Washi's statement of financial position reported the following information at the date of acquisition:
Assets not subject to being amortized
$152,000
Assets subject to depreciation (10 years average life remaining)
459,000
Liabilities
85,000
Additional information:
1 Both the carrying amount and fair value are the same for non-depreciable assets and for liabilities.
2 The fair value of the assets subject to depreciation is $555,000.
3. The company depreciates its capital assets on a straight-line basis.
4. Washi reported net income of $121,000 and declared and paid dividends of $83,000 in 2023.