Name ACCT$414$ Chapter $1$ Practice Exam

The Joan Distribution Corporation bought a $30\%$ interest in the Swansong Corporation on January $1,2024$ for $$50,000.$ Joan is able to exert significance influence over Erickson.

Identified Assets:

The excess equipment will have a useful life of $10$ years, and the excess patents will have a useful life of $6$ years

Unidentified Assets: The goodwill will have an infinite life.

$\backslash$table$[[(100\%$ Amounts$),\backslash$table$[[$Book$],[$Value$]],\backslash$table$[[$Fair$],[$Value$]]],[$Assets$,10,000,10,000],[$Current Assets,$20,000,20,000],[$Land$,50,000,50,000],[$Buildings$,60,000,80,000],[$Equipment$,15,000,25,000],[$Patents$,155,000,],[$Total Assets,,$],[,,],[$Liabilities$,10,000,],[$Accounts Payable,$45,000,],[$Loan Payable,$45,000,],[$Total Liabilities,$55,000,],[$Total Net Income,$25,000,]]$

Make the journal entries for the initial investment, net income, dividends, and amortizations for $2024.$

Date

Debit

Credit