Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ANDREA HUANCAQIcoun Documente - Word 0 Search rences Mailings Review View Help Layout On January 1, 2010, P Company purchased an 80% interest in s

image text in transcribed
ANDREA HUANCAQIcoun Documente - Word 0 Search rences Mailings Review View Help Layout "On January 1, 2010, P Company purchased an 80% interest in s Company for $900.000. At that time, s Company had capital stock of $600,000 and retained earnings of $100,000. Differences between the fair value and the book value of the identifiable assets of Salem Company were as follows: Fair value in of Book Value Equipment $ 180,000 Land 20,000 Inventory 20.000 The book values of all other assets and Sabieties of Company were equal to the fair values on January 1, 2010. The equipment had a remaining life of five years. The inventory was sold in 2010 5 Company's net income and dividends declared in 2010 Net Income of $120,000: Dividends Declared of $30,000 Prepare W/P to allocate the differences (see above question) Prepare 1/E under cost method for Ni and Dividends (see above question) Prepare W/P entries to eliminate Dividends and convert cost to equity (see above question Prepare W/P entry to eliminate the equity of 5 and investment of Pat 12/31 (see above question Prepare W/P to allocate differences (all inventory has been sold), and the extra depreciation entry see above question Focus ANDREA HUANCAQIcoun Documente - Word 0 Search rences Mailings Review View Help Layout "On January 1, 2010, P Company purchased an 80% interest in s Company for $900.000. At that time, s Company had capital stock of $600,000 and retained earnings of $100,000. Differences between the fair value and the book value of the identifiable assets of Salem Company were as follows: Fair value in of Book Value Equipment $ 180,000 Land 20,000 Inventory 20.000 The book values of all other assets and Sabieties of Company were equal to the fair values on January 1, 2010. The equipment had a remaining life of five years. The inventory was sold in 2010 5 Company's net income and dividends declared in 2010 Net Income of $120,000: Dividends Declared of $30,000 Prepare W/P to allocate the differences (see above question) Prepare 1/E under cost method for Ni and Dividends (see above question) Prepare W/P entries to eliminate Dividends and convert cost to equity (see above question Prepare W/P entry to eliminate the equity of 5 and investment of Pat 12/31 (see above question Prepare W/P to allocate differences (all inventory has been sold), and the extra depreciation entry see above question Focus

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

10th edition

0-07-794127-6, 978-0-07-79412, 978-0077431808

More Books

Students also viewed these Accounting questions

Question

5.3 Explain internal recruitment methods.

Answered: 1 week ago