On January 1, 2018, Vacker Co acquired 70 of Carper Inc by paying $630,000 Carper reported common stock on that date of $420,000 with retained earnings of $250,000 Book value equaled fair value for all items on Carpers balance sheet except for the following Book Value Land $40,000 Building (10 yr remaining life) $120,000 Copyrights (20 yr remaining life) $10,000 Fair Value Land $60,000 Building (10 yr remaining life) $150,000 Copyrights (20 yr remaining life) $80,000 Carper earned net income and paid cash dividends as follows Net Income 2018 $105,000 2019 $135,000 2020 $150,000 Dividends Paid 2018 $50,000 2019 $60,000 2020 $80,000 Vecker Co uses the partial equity method to account for its investment in Carper Inc Required 1 Prepare a schedule to determine goodwill, and the amortization and allocation amounts 2 Prepare the December 31, 2019, consolidating eliminating entries, in general journal form (Vacker Co and Subsidiary Consolidated Worksheet)

Question

On January 1, 2018, Vacker Co  acquired 70  of Carper Inc  by paying $630,000  Carper reported common stock on that date of $420,000 with retained earnings of $250,000  Book value equaled fair value for all items on Carpers balance sheet except for the following  Book Value  Land   $40,000 Building (10 yr  remaining life)   $120,000 Copyrights (20 yr  remaining life)   $10,000 Fair Value  Land   $60,000 Building (10 yr  remaining life)   $150,000 Copyrights (20 yr  remaining life)   $80,000 Carper earned net income and paid cash dividends as follows  Net Income  2018   $105,000 2019   $135,000 2020   $150,000 Dividends Paid  2018   $50,000 2019   $60,000 2020   $80,000 Vecker Co  uses the partial equity method to account for its investment in Carper Inc  Required  1  Prepare a schedule to determine goodwill, and the amortization and allocation amounts  2  Prepare the December 31, 2019, consolidating eliminating entries, in general journal form  (Vacker Co  and Subsidiary  Consolidated Worksheet)

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On January 1, 2018, Vacker Co. acquired 70% of Carper Inc. by paying $630,000. Carper reported common stock on that date of $420,000 with retained

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