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On January 1, 2020, Club Corporation purchased 120,000 shares of Liptona views Company common stock for $1,200,000, giving Club 35% ownership and the ability to
On January 1, 2020, Club Corporation purchased 120,000 shares of Liptona views Company common stock for $1,200,000, giving Club 35% ownership and the ability to apply significant influence over Liptona views. On that date, the book value of Liptona views was $2,925,000. A building with a carrying value of $570,000 was worth $780,000. The building had a remaining life of 10 years. Liptona owned a trademark, the trademark was undervalued by $420,000 with a ten-year remaining life. Club attributed to goodwill any unidentified excess cost. Liptona views Co. reported net income of $675,000 during 2020 and declared and paid dividends of $255,000. Required: Prepare all of Club's journal entries for 2020 in relation to its investment in Liptona views Co. PLEASE SHOW COMPUTATIONS For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)
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