P7 4) Sale of partial, then balance of interest On January 1, 2013, Carlos Corp purchases 90 (18,000 shares) of the outstanding common stock of Dower Company for $504,000 Just prior to Carlos Corp purchase, Dower company has the following stockholders equity Common Stock ($5 par) $100,000 PIC Excess of Par $300,000 Retained Earnings $100,000 At this time, dower company's book values approximate fair values except for buildings with a 20 year lifee On January 1, 2017, Dower Companys retained earnings balance amounts to $200,000 No changes have taken place in the PIC in excess of par accounts since the original sale of common stock on July 10, 2010 On July 1, 2017, Carlos Corp sells 2,000 of its dower company shares to tanner corp for $100,000 At the time of this sale, carlos has no intention of selling the balance of its holding in dower company In an unexpected move on Dec 31, 2017, Carlos Corporation sells its remaining 80 interest in Dower Company to Tanner Corp for $540,000 Dower Companys reported income and dividends for 2017 are as follows Income Dividends January 1, 2017 to July 1, 2017 $30,000 50 Share July 1, 2017 to December 31, 2017 $40,000 50 Share Prepare the D D of excess schedule for Carlos Corporation's purchase of Dower Company common stock on January 1, 2013 Then, prepare all the entries on Carlos's books needed to refeclt the changes in its investment account from January 1, 2017, to December 31, 2017 (Assume carlos uses the cost method to report its investment in Dowe Company)

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P7 4) Sale of partial, then balance of interest On January 1, 2013, Carlos Corp  purchases 90  (18,000 shares) of the outstanding common stock of Dower Company for $504,000  Just prior to Carlos Corp  purchase, Dower company has the following stockholders equity  Common Stock ($5 par) $100,000 PIC Excess of Par $300,000 Retained Earnings $100,000 At this time, dower company's book values approximate fair values except for buildings with a 20 year lifee  On January 1, 2017, Dower Companys retained earnings balance amounts to $200,000  No changes have taken place in the PIC in excess of par accounts since the original sale of common stock on July 10, 2010  On July 1, 2017, Carlos Corp  sells 2,000 of its dower company shares to tanner corp  for $100,000  At the time of this sale, carlos has no intention of selling the balance of its holding in dower company  In an unexpected move on Dec  31, 2017, Carlos Corporation sells its remaining 80  interest in Dower Company to Tanner Corp  for $540,000  Dower Companys reported income and dividends for 2017 are as follows  Income Dividends January 1, 2017 to July 1, 2017 $30,000  50 Share July 1, 2017 to December 31, 2017 $40,000  50 Share Prepare the D   D of excess schedule for Carlos Corporation's purchase of Dower Company common stock on January 1, 2013  Then, prepare all the entries on Carlos's books needed to refeclt the changes in its investment account from January 1, 2017, to December 31, 2017  (Assume carlos uses the cost method to report its investment in Dowe Company)

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P7-4) Sale of partial, then balance of interest On January 1, 2013, Carlos Corp. purchases 90% (18,000 shares) of the outstanding common stock of Dower

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P7-4) Sale of partial, then balance of interest
On January 1, 2013, Carlos Corp. purchases 90% (18,000 shares) of the outstanding common stock of Dower Company for $504,000. Just prior to Carlos Corp. purchase, Dower company has the following stockholders equity.
Common Stock ($5 par)	$100,000
PIC Excess of Par	$300,000
Retained Earnings	$100,000

At this time, dower company's book values approximate fair values except for buildings with a 20-year lifee.
On January 1, 2017, Dower Companys retained earnings balance amounts to $200,000. No changes have taken place in the PIC in excess of par accounts since the original sale of common stock on July 10, 2010.
On July 1, 2017, Carlos Corp. sells 2,000 of its dower company shares to tanner corp. for $100,000. At the time of this sale, carlos has no intention of selling the balance of its holding in dower company.
In an unexpected move on Dec. 31, 2017, Carlos Corporation sells its remaining 80% interest in Dower Company to Tanner Corp. for $540,000.
Dower Companys reported income and dividends for 2017 are as follows:
	Income	Dividends
January 1, 2017 to July 1, 2017	$30,000	.50/Share
July 1, 2017 to December 31, 2017	$40,000	.50/Share

Prepare the D & D of excess schedule for Carlos Corporation's purchase of Dower Company common stock on January 1, 2013. Then, prepare all the entries on Carlos's books needed to refeclt the changes in its investment account from January 1, 2017, to December 31, 2017. (Assume carlos uses the cost method to report its investment in Dowe Company)