Question
ON December 31, 2008, Dalker Co. acquired 85% of Bleaker Inc. by paying $750,000. Bleaker Reported Common stock on that date of $400,000 with retained
ON December 31, 2008, Dalker Co. acquired 85% of Bleaker Inc. by paying $750,000. Bleaker Reported Common stock on that date of $400,000 with retained earnings of $305,000.Equipment was undervalued in the company's financial records by $48,000. this equipment had a six year remaining life. Customer list of $50,000 were to be recognized and amortized over 10 years.
Bleaker earned incomes and paid cash dividends as follows:
2009, $125,000 net income and $37,000 dividend.
2010 $135,000 net income and $53,000 dividend.
2011 $162,000 net income and $76,000 dividend.
There have no change in Carper's common stock account since acquisition.
- Prepare the journal entry to record the acquisition of Bleaker Inc. by Dalker Co.
- Prepare the journal entry to record the consolidating elimination entry for date of acquisition on December 31, 2008.
- Prepare the equity method of Accounting entries recorded on Dalkers general ledger for 2009.
- Prepare the journal entry to record the consolidating elimination entry in one year subsequent to the date of acquisition on December 31, 2009.
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