Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Duelo On January 1, 2019. Power Corporation acquired 90% of Star Company's voting stock at underlying book value. The far value of the noncontroing interest

image text in transcribed

Duelo On January 1, 2019. Power Corporation acquired 90% of Star Company's voting stock at underlying book value. The far value of the noncontroing interest was equal to 10% of the book value of Star at that date.Power uses the equity method in cccounting for its ownership of Star On December 31. 2019. the trial bolonces of the two companies are as follows ONDE Monted out of 1 P flog Hem Star Power Debit Crede Deba Creda Current Assets $200,000 $120,000 Depreciable Assets 300,000 225.000 139,500 30,000 Investment in Star Depreciation Expense Other Expenses Dividends Declared 25.000 60,000 100.000 30,000 10,000 $120,000 $75,000 Accumulated Depreciation Current Liabilities 62.000 25,000 90.000 75,000 Long-Term Debt Common Stock 100,000 75.000 Retained Eamings 120,000 65,000 300.000 Boles 110.000 Income from Star Total 22.500 $799,500 $799,500 $440,000 $440,000 The required Optional emination entry as of December 31, 2019 Select one: a. Dr. Accumulated Depreciation - 3 75,000 C Building & Equipment. 575.000 D. Dr. Depreciation Expense - $75,000 Ct. Building & Equipment -3 78,000 c. Dr. Depreciation Expense - 50.000 Cr Building Comp Equipment -5 50.000 d. Dr. Accumulated Depreciation - 350.000 Building samp: Equipment - 550.000 FU

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

Step: 3

blur-text-image

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

The Brazilian Economy Confronting Structural Challenges

Authors: Edmund Amann

1st Edition

0367245272, 9780367245276

More Books

Students also viewed these Accounting questions

Question

=+c) How many baseballs produced were out of spec?

Answered: 1 week ago