10 - 12b

Please provide the following journal entries:

I have some answers below already:

Record the acquisition of the foreign investment. Record the dividend received. Record the equity accrual for the percentage of the subsidiary's income. Record the amortization of the differential. Palermo Inc. purchased 80 percent of the outstanding stock of Salina Ranching Company, located in Australla, on January 1, 20X3. The purchase price in Australian dollars (A\$) was A$200,000, and A$40,000 of the differentlal was allocated to plant and equipment, which is amortized over a 10 -year perlod. The remainder of the differentlal was attributable to a patent. Palermo Inc. amortizes the patent over 10 years. Salina Ranching's trial balance on December 31, 20X3, in Australlan dollars Is as follows: Additional Information: 1. Salina Ranching uses average cost for cost of goods sold. Inventory Increased by A$20,000 during the year. Purchases were made uniformly during 203. The ending inventory was acquired at the average exchange rate for the year. 2. Plant and equipment were acquired as follows: 3. Plant and equipment are depreclated using the stralght-Ine method and a 10-year life, with no residual value. 4. The payable to Palermo is in Australlan dollars. Palermo's books show a recelvable from Salina Ranching of $6,480. 5. The 10-year bonds were Issued on July 1, 20X3, for A \$106,000. The premlum is amortized on a straight-Iline basis. The Interest is pald on Aprll 1 and October 1. 6. The dlvidends were declared and paid on Aprll 1. 7. Exchange rates were as follows: Assume the U.S. dollar is the functional currency. Palermo uses the fully adjusted equity method for accounting for its Investment in Salina Ranching. Required: a. Prepare the entrles that Palermo would record in 203 for Its investment in Salina Ranching. Your entrles should do the following: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Required: a. Prepare the entrles that Palermo would record in 203 for Its Investment In Salina Ranching. Your entrles should do the following: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)