On January 1, 2013 Runners purchased 300 of the 1,000 outstanding common shares of JenCo for $32,000. The equity method will be used to account for the investment. At that date, the balance sheet of JenCo showed the following book values: Assets not subject to depreciation $40,000 Assets subject to depreciation (net) Liabilities 7,000 Common shares 50,000 Retained earnings 8,000 * Book value is the same as market value. ** Market value $30,000; the assets have a 10-year remaining life (straight-line depreciation). 25,000 a) Give the entry by Runners to record the acquisition. Enter an appropriate description, and enter the date in the format dd/mmm (le. 15/Jan). Please make sure your final answer(s) are accurate to 2 decimal places. Page 3 Account Explanation PR Debit Credit General Journal b) Compute goodwill purchased at acquisition. Please make sure your final answer(s) are accurate to the nearest whole number. Goodwills c) Assume that at December 31, 2013 (end of the accounting period), JenCo reported a net income of $8,000, and paid dividends of $4,000. Goodwill has not been impaired. Prepare the entries Runners would record. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). Please make sure your final answer(s) are accurate to 2 decimal places. General Journal Page G4 Date Account/Explanation PR Debit Credit