During 2020, Justin Spoon reported net earnings of $5,540,000 and other comprehensive income of $650,000. The Company paid dividends of $2,790,000. The fair value of Justin Spoon Corp.s common stock was $38.50 per share at December 31, 2020. The shareholding percentage of Chapman Utensils is 32%.

d. Prepare the entries recorded by Chapman Utensils share of the net earnings and other comprehensive income of Justin Spoon and the adjustment to fair value, if necessary. (12 points)

DATE	ACCOUNT NAMES		DEBIT	CREDIT

e. Prepare the entry to record Chapman Utensils share of the dividends of Justin Spoon. (4 points)

DATE	ACCOUNT NAMES		DEBIT	CREDIT

f. Prepare the entry to amortize the price differential paid by Chapman Utensil that was allocated to the assets of Justin Spoon. (8 points)

DATE	ACCOUNT NAMES		DEBIT	CREDIT

Chapman Utensil purchased inventory from Justin Spoon totaling $8,320,000 during 2020 at a gross profit to Justin Spoon of 55%. At December 31, 2020, $1,875,000 of the goods purchased from Justin Spoon remained in Chapman Utensils inventory.

7. Prepare the journal entry at December 31, 2020 to eliminate the gross profit in the intra-entity inventory. (4 points)

DATE	ACCOUNT NAMES		DEBIT	CREDIT