Question 4

Helene Lapierre

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Jul 26, 2011, 4:28:56 PM7/26/11

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I have most of question 4 done - but - there is always a but.... I think that when we calculate CRE we have to include the loss on the 2nd purchase. Please review the spreadsheet and let me know what you think

Helene

assign 2 question 4.xlsx

KevinM

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Jul 26, 2011, 4:56:59 PM7/26/11

to FA4 Summer 2011

I did my cre differently

Pic's ending RE 550,000

plus 95% of Sic net income for both years
less 95% of Sic's dividends for both years
less 95% amort PPD for both years

total was 464,500 for cre

> assign 2 question 4.xlsx
> 18KViewDownload

KevinM

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Jul 26, 2011, 4:58:22 PM7/26/11

to FA4 Summer 2011

My cre is the only difference I have compared to your answers

On Jul 26, 4:28 pm, Helene Lapierre <lenny.lapie...@gmail.com> wrote:

lenny.l...@gmail.com

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Jul 26, 2011, 5:18:23 PM7/26/11

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But for step purchases we need to record the loss for the 2nd purchase and this amount should go RE of the parent - just not sure how to show it
Helene
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