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B.Par uses the fully adjusted equity method to account for its investment. Provide the entries that it would record in 20X1 for its investment in

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B.Par uses the fully adjusted equity method to account for its investment. Provide the entries that it would record in 20X1 for its investment in North Bay for the following items: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to nearest whole dollar.)

B-1 .Record the acquisition of North Bay Company.

B-2 Record the equity in income of the subsidiary.

B-3 Record the dividend from the foreign subsidiary.

B-4 Record the amortization of the differential.

B-5 Record the entry to recognize the translation adjustment on the differential.

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On January 1, 20X1, Par Company purchased all the outstanding stock of North Bay Company, located in Canada, for $113,400. On January 1, 20x1, the direct exchange rate for the Canadian dollar (C5) was CS1 - $0.81. North Bay's book value on January 1, 20X1, was C594,000. The fair value of North Bay's plant and equipment was CS9,600 more than book value, and the plant and equipment are being depreciated over 10 years with no salvage value. The remainder of the differential is attributable to a trademark, which will be amortized over 10 years. During 20X1, North Bay earned CS29,000 in income and declared and paid CS8,000 in dividends. The dividends were declared and paid in Canadian dollars when the exchange rate was C$1 $0.75?On December 31, 20X1, Par continues to hold the Canadian currency received from the dividend. On December 31, 20x1, the direct exchange rate is C$1 50.64. The average exchange rate during 20X1 was CS $0.78. Management has determined that the Canadian dollar is North Bay's appropriate functional currency. Required: a. Prepare a schedule showing the differential allocation and amortization for 20X1. The schedule should present both Canadian dollars and U.S. dollars. (Amounts to be deducted should be entered with a minus sign. Round "Exchange Rate" answers to 2 decimal places and rest of answers to nearest whole dollar.) Canadian Dollars Exchange Rate U.S. Dollars Investment cost Book value of investment on January 1, 20xX1 Differential CI S Canadian Dollars Exchange Rate U.S. Dollars Plant and equipment Plant and Trademark equipment Trademark Income Statement: Differential at date of acquisition Amortization this period: (10 years) Remaining balance: Balance Sheet Remaining balance on 12/31/X1 translated at year-end exchange rates: Difference to OCI-translation adjustment: | C

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