Paper Company acquired 80 percent of Scissor Company's outstanding common stock for $296,000 on January 1,...

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Paper Company acquired 80 percent of Scissor Company's outstanding common stock for $296,000 on January 1, 20X8, when the book value of Scissor's net assets was equal to $370,000. Paper uses the equity method to account for investments. Trial balance data for Paper and Scissor as of January 1, 20X8, follow: Assets Cash Accounts Receivable Inventory Investment in Scissor Company Land Buildings and Equipment Accumulated Depreciation Total Assets Liabilities and Stockholders' Equity Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities and Equity Paper Company Scissor Company $ 109,000 $ 25,000 65,000 37,000 125,000 87,000 296,000 280,000 125,000 875,000 250,000 (500,000) $1,250,000 (24,000) $500,000 95,000 $ 30,000 250,000 100,000 625,000 250,000 280,000 120,000 $1,250,000 $500,000 Paper Company acquired 80 percent of Scissor Company's outstanding common stock for $296,000 on January 1, 20X8, when the book value of Scissor's net assets was equal to $370,000. Paper uses the equity method to account for investments. Trial balance data for Paper and Scissor as of January 1, 20X8, follow: Assets Cash Accounts Receivable Inventory Investment in Scissor Company Land Buildings and Equipment Accumulated Depreciation Total Assets Liabilities and Stockholders' Equity Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities and Equity Paper Company Scissor Company $ 109,000 $ 25,000 65,000 37,000 125,000 87,000 296,000 280,000 125,000 875,000 250,000 (500,000) $1,250,000 (24,000) $500,000 95,000 $ 30,000 250,000 100,000 625,000 250,000 280,000 120,000 $1,250,000 $500,000