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2. (20 points) On January 1, 2XX1, Scott purchases 25% of Nina's outstanding voting stock for $100,000. On the date of acquistion,A36 Nina has a
| 2. (20 points) On January 1, 2XX1, Scott purchases 25% of Nina's outstanding voting stock for $100,000. On the date of acquistion,A36 Nina has |
| a book value of $350,000. Nina also had a building where the FMV exceeds the book value by $50,000. The building has a remaining 10 year life. |
| Any additional premium is attributable to goodwill. During he year, Nina earns $40,000 and pays dividends of $15,000. |
| Prepare the journal entries to record the investment, dividends, and income assuming that Scott: |
| A. Cannot exercise Significant Influence. |
| B. Can exercise Significant Influence. |
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Business Accounting
Authors: Frank Wood, Alan Sangster
7th Edition
0273619829, 9780273619826
