2. Topic: Complete equity method four years after acquisition LO1 Poolside Company acquired the voting for $350,000. The $300,000 excess of acou as follows: pany acquired the voting common stock of Sunscreen Industries on January 1, 2017 . The $300.000 excess of acquisition cost over Sunscreen's book value was allocated Inventories Plant & equipment equipment Internet domain name ernet domain name Customer order backlog $(25,000) (50.000) 60.000 10,000 FIFO (sold in 2017) 10 years, straight-line 3 years, straight-line 2 years, straight-line Cumulative impairment, 2017-2019 = $200 2020 impairment = $150 300.500 Goodwill Total excess of acquisition cost over book value $300,000 Sunscreen's book value on January 1, 2017 was: Capital stock Retained earnings Accumulated other comprehensive income Treasury stock Total $ 5,000 45,500 1,500 12,000) $50,000 Sunscreen reported 2020 net income of $50,000 and other comprehensive income of $800. Its retained earnings balance on December 31, 2019 is $92,000, and its December 31, 2019 balance for accumulated other comprehensive income is $2,000. On its own books, Poolside accounts for its investment in Sunscreen using the complete equity method. Required Calculate equity in net income of Sunscreen for 2020, reported on Poolside's books. Prepare the journal entry or entries Poolside makes on its own books in 2020 to account for its investment in Sunscreen. Calculate the balance for Investment in Sunscreen at December 31, 2020, reported on Poolside's books. c. on January 1, 2017 in common stock of Sunscreen Industries on January of acquisition cost over Sunscreen's book value was allocate Company acquired me 2. Top Complete equity method, four years after acquisition Poolside company acquired the voting com for $350.000. The $300,000 excess of acquisition cost over Suns as follows: $(25.000) (50,000) 60,000 10,000 ventories Plant & equipment Internet domain name Customer order backlog 3 FIFO sold in 2017) 10 years, straight-line years, straight-line 2 years, straight-line Cumulative impairment, 2017 - 2019 $200 2020 impairment - $150 300, 500 Goodwill Total excess of acquisition cost over book value $300,000 Sunscreen's book value on January 1, 2017 was: Capital stock Retained earnings Accumulated other comprehensive income Treasury stock Total $ 5,000 45,500 1.500 12.000) $ 50,000 Sunscreen reported 2020 net income of $50,000 and other comprehensive income of $800. Its retained earnings balance on December 31, 2019 is $92,000, and its December 31, 2019 balance for accumulated other comprehensive income is $2,000. On its own books, Poolside accounts for its investment in Sunscreen using the complete equity method. Required a. Calculate equity in net income of Sunscreen for 2020, reported on Poolside's books Prepare the journal entry or entries Poolside makes on its own books in 2020 to account for its investment in Sunscreen. C. Calculate the balance for Investment in Sunscreen at December 31, 2020, reported on Poolside's books. 2. Topic: Complete equity method four years after acquisition LO1 Poolside Company acquired the voting for $350,000. The $300,000 excess of acou as follows: pany acquired the voting common stock of Sunscreen Industries on January 1, 2017 . The $300.000 excess of acquisition cost over Sunscreen's book value was allocated Inventories Plant & equipment equipment Internet domain name ernet domain name Customer order backlog $(25,000) (50.000) 60.000 10,000 FIFO (sold in 2017) 10 years, straight-line 3 years, straight-line 2 years, straight-line Cumulative impairment, 2017-2019 = $200 2020 impairment = $150 300.500 Goodwill Total excess of acquisition cost over book value $300,000 Sunscreen's book value on January 1, 2017 was: Capital stock Retained earnings Accumulated other comprehensive income Treasury stock Total $ 5,000 45,500 1,500 12,000) $50,000 Sunscreen reported 2020 net income of $50,000 and other comprehensive income of $800. Its retained earnings balance on December 31, 2019 is $92,000, and its December 31, 2019 balance for accumulated other comprehensive income is $2,000. On its own books, Poolside accounts for its investment in Sunscreen using the complete equity method. Required Calculate equity in net income of Sunscreen for 2020, reported on Poolside's books. Prepare the journal entry or entries Poolside makes on its own books in 2020 to account for its investment in Sunscreen. Calculate the balance for Investment in Sunscreen at December 31, 2020, reported on Poolside's books. c. on January 1, 2017 in common stock of Sunscreen Industries on January of acquisition cost over Sunscreen's book value was allocate Company acquired me 2. Top Complete equity method, four years after acquisition Poolside company acquired the voting com for $350.000. The $300,000 excess of acquisition cost over Suns as follows: $(25.000) (50,000) 60,000 10,000 ventories Plant & equipment Internet domain name Customer order backlog 3 FIFO sold in 2017) 10 years, straight-line years, straight-line 2 years, straight-line Cumulative impairment, 2017 - 2019 $200 2020 impairment - $150 300, 500 Goodwill Total excess of acquisition cost over book value $300,000 Sunscreen's book value on January 1, 2017 was: Capital stock Retained earnings Accumulated other comprehensive income Treasury stock Total $ 5,000 45,500 1.500 12.000) $ 50,000 Sunscreen reported 2020 net income of $50,000 and other comprehensive income of $800. Its retained earnings balance on December 31, 2019 is $92,000, and its December 31, 2019 balance for accumulated other comprehensive income is $2,000. On its own books, Poolside accounts for its investment in Sunscreen using the complete equity method. Required a. Calculate equity in net income of Sunscreen for 2020, reported on Poolside's books Prepare the journal entry or entries Poolside makes on its own books in 2020 to account for its investment in Sunscreen. C. Calculate the balance for Investment in Sunscreen at December 31, 2020, reported on Poolside's books