On January 1, 2020, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6655bbb64d22a_6466655bbb648122.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6655bbb68a4c4_6466655bbb684707.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6655bbb6c1841_6466655bbb6bd566.jpg)
Transcribed Image Text:
On January 1, 2020, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company for $1,392,300 in cash. The price paid was proportionate to Sellinger's total fair value, although at the acquisition date, Sellinger had a total book value of $1,700,000. All assets acquired and liabilities assumed had fair values equal to book values except for a patent (six-year remaining life) that was undervalued on Sellinger's accounting records by $279,000. On January 1, 2021, Palka acquired an additional 25 percent common stock equity interest in Sellinger Company for $536,250 in cash. On its internal records, Palka uses the equity method to account for its shares of Sellinger. During the two years following the acquisition, Sellinger reported the following net income and dividends: aw 2020 Net income Dividends declared $472,500 150,000 2021 $ 622,500 180,000 a. Show Palka's journal entry to record its January 1, 2021, acquisition of an additional 25 percent ownership of Sellinger Company shares. b. Prepare a schedule showing Palka's December 31, 2021, equity method balance for its Investment in Sellinger account Complete this question by entering your answers in the tabs below. Required A Required B Show Palka's journal entry to record its January 1, 2021, acquisition of an additional 25 percent ownership of Sellinger Company shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < Prev 10 of 12 Next > On January 1, 2020, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company for $1,392,300 in cash. The price paid was proportionate to Sellinger's total fair value, although at the acquisition date, Sellinger had a total book value of $1,700,000. All assets acquired and liabilities assumed had fair values equal to book values except for a patent (six-year remaining life) that was undervalued on Sellinger's accounting records by $279,000. On January 1, 2021, Palka acquired an additional 25 percent common stock equity interest in Sellinger Company for $536,250 in cash. On its internal records, Palka uses the equity method to account for its shares of Sellinger. During the two years following the acquisition, Sellinger reported the following net income and dividends: aw 2020 Net income Dividends declared $472,500 150,000 2021 $ 622,500 180,000 a. Show Palka's journal entry to record its January 1, 2021, acquisition of an additional 25 percent ownership of Sellinger Company shares. b. Prepare a schedule showing Palka's December 31, 2021, equity method balance for its Investment in Sellinger account Complete this question by entering your answers in the tabs below. Required A Required B Show Palka's journal entry to record its January 1, 2021, acquisition of an additional 25 percent ownership of Sellinger Company shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < Prev 10 of 12 Next >
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
From an agency relationship standpoint, describe the possible types of problems or conflicts of interest that could inhibit maximizing a venture's value.
-
In the source routing example, the address received by B is not reversible and does not help B know how to reach A. Propose a modification to the delivery mechanism that does allow for reversibility....
-
Now place each of the following items under the correct heading Assets or Liabilities e@ Premises Debtors Creditors Motor vehicle Office furniture @ Capital @ Cash in hand
-
1. Is the fight-or-flight response evident in this case? Explain. 2. What influences on the stress experience appear to be present? 3. What were the primary work-related stressors for Coleen Colombo...
-
Step by step for each question please 1) Two boxes with masses m, and my lean on each other on an inclined plane, with box m2 closer to the floor than box m1. The boxes are made of different...
-
1. Describe the importance of the 19th and 15th Amendments +
-
In the table below which shows class taken and grade achieved, find the probability that a student selected takes Stat or receives a B grade. Round your answer to three decimal places 40 70 70 50 40...
-
Salinger Company estimates that total factory overhead costs will be $70,000 for the year. Direct labor hours are estimated to be 10,000. a. For Salinger Company, determine the predetermined factory...
-
SCS receives on average 1 data package every 1/50 seconds, with a standard deviation of 1/50 seconds, and processes them using its single powerful computing unit, which can process data packages in...
-
Suppose that we pay workers $25 per day.We value processed orders at $4 per order and the number of orders each worker can process is worker 1 - 8 orders, worker 2 - 7 orders, worker 3 - 6 orders,...
-
How do I imagine that I am the administrator of a midsize long-term care facility with an outdated information system and I have been given thetaskto planand managethe integration of a new database...
-
Often employees and management are reluctant to use CRM. What would you do to overcome their protests for employees? Management
-
What ways could technology be leveraged to increase your chances of program success?
-
Would you implement any education or training programs, and how would you handle the logistics of project manager locations?
-
Assuming you would use some form of reward system for HPTs exceeding expectations, how would you approach rewarding teams or individuals?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App