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(A) RECORD THE PURCHASE OF SOFTBALL (B) RECORD THE DIVIDEND RECEIVED FROM SOFTBALL (C) RECORD THE EQUITY-METHOD INCOME/LOSS (D) RECORD THE AMORTIZATION OF THE DIFFERENTIAL
(A) RECORD THE PURCHASE OF SOFTBALL
(B) RECORD THE DIVIDEND RECEIVED FROM SOFTBALL
(C) RECORD THE EQUITY-METHOD INCOME/LOSS
(D) RECORD THE AMORTIZATION OF THE DIFFERENTIAL ASSIGNED TO INVENTORY CARRIED ON A FIFO BASIS
(E) RECORD THE AMORTIZATION OF THE DIFFERENTIAL ASSIGNED TO BUILDINGS AND EQUIPMENT
Softball Corporation reported the following balances at January 1, 20X9: Item Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Total Assets Accounts Payable Common Stock ($9 par value) Additional Paid-In Capital Retained Earnings Total Liabilities and Equities Book Value Fair Value $ 45,000 $ 45,000 79,000 79,000 111,000 132,000 301,000 257,000 (159,000) $ 377,000 $513,000 $ 63,000 $ 63,000 81,000 25,000 208,000 $ 377,000 On January 1, 20X9, Pitcher Corporation purchased 100 percent of Softball's stock. All tangible assets had a remaining economic life of 5 years at January 1, 20X9. Both companies use the FIFO inventory method. Softball reported net income of $24,000 in 20x9 and paid dividends of $3,500. Pitcher uses the equity method in accounting for its investment in Softball. Required: Prepare all journal entries that Pitcher recorded during 20x9 with respect to its investment assuming Pitcher paid $481,500 for the ownership of Softball on January 1, 20X9. The amount of the differential assigned to goodwill is not impaired. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)Step by Step Solution
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