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Equity Method Accounting, First Year George Corporation acquired all of the stock of Johnson Corporation on January 2 , 2 0 2 2 . The
Equity Method Accounting, First Year
George Corporation acquired all of the stock of Johnson Corporation on January The book value of the net assets of Johnson on that date was $ million and the fair
values of Johnson's identifiable net assets equaled the book values, except for previously unreported developed technology valued at $ million. The fair market value of the
shares issued by George Corporation was $ million. The developed technology is straightline amortized over years.
For the year ended December Johnson reported net income of $ million and declared and paid dividends of $ million. Goodwill impairment for is $
million. The developed technology is not impaired. George uses the complete equity method to account for its investment in Johnson on its own books.
Required
a Calculate equity in net income of Johnson, reported on George's books.
$ million
b Prepare journal entries to record George's acquisition of Johnson and subsequent entries to the investment account for What is the December
investment balance, reported on George's books?
Enter your answers below in millions.
ONLY THE WRONG ONE AND ITS NOT I TRIED THAT
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