Journal entries under various methods of accounting for investments. Mulherin Corporation made three long-term investments on January 2. Data relating to these investments appear below.

Assume that these were the only intercorporate investments of Mulherin Corporation.
Mulherin amortizes goodwill over 20 years.

a. Give the journal entries on Mulherin Corporation's books to record these acquisitions of common stock and to account for the intercoiporate investments under GAAP. Mulherin Corporation accounts for its investment in Quinn Corporation using the equity method on its separate-company books.

b. (Requires coverage of Appendix 11.1.) Give the work sheet entry to consolidate Mulherin Corporation and Quinn Corporation. The preclosing trial balance of Quinn Corporation shows the following:

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Company Hanson Maloney Quinn Book Value and Market Value Dividends Market Value Declared of Shares Percentage Acquired of Net Assets on January 2 Acquisition Cost Net Income for Year during the Year 15% $2,000,000 $ 320,000 $200,000 $ 40,000 30 100 2,000,000 2,000,000 680,000 2,800,000 600.000 500,000 180,000 310,000 Held on December 31 $ 305,000 700,000 1,950.000