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Part / COMBINED CORPORATE ENTITIES AND C CONSOLIDAY Assets Current assets ...... . Land..... Equipment Accumulated depreciation .... Total assets... Liabilities and Equity $ 60,000

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Part / COMBINED CORPORATE ENTITIES AND C CONSOLIDAY Assets Current assets ...... . Land..... Equipment Accumulated depreciation .... Total assets... Liabilities and Equity $ 60,000 Accounts payable ..... 100,000. Common stock ($5 por)... 350,000 Paid.in capital in excess of par.... 1150,000 Retained earnings ............ $360,000 Total liabilities and equity ..... $ 60,000 50,000 100,000 150,000 $360,000 Appraisals indicates that accounts are fairly stated except for the equipment, which has a fair value of $225,000 and a remaining life of five years. Any remaining excess is goodwill. Hill Company experiences the following changes in retained earnings during 20X1 and 20X2: $ 150,000 $ 60,000 (10,000) Retained earnings, January 1, 20X1. Net income, 20X1.. Dividends paid in 20X1... Balonce, December 31, 20X1. Net income, 20X2.. Dividends paid in 20x2. Balance, December 31, 20x2 50,000 $200,000 $ 40,000 (10,000) 30,000 $230,000 Prepare a determination and distribution of excess schedule for the investment in Hill Com- pany (a value analysis is not needed). Prepare journal entries that Cooke Company would make on its books to record income earned and/or dividends received on its investment in Hill Com- pany during 20X1 and 20X2 under the following methods: simple equity, sophisticated equity, and cost. Part / COMBINED CORPORATE ENTITIES AND C CONSOLIDAY Assets Current assets ...... . Land..... Equipment Accumulated depreciation .... Total assets... Liabilities and Equity $ 60,000 Accounts payable ..... 100,000. Common stock ($5 por)... 350,000 Paid.in capital in excess of par.... 1150,000 Retained earnings ............ $360,000 Total liabilities and equity ..... $ 60,000 50,000 100,000 150,000 $360,000 Appraisals indicates that accounts are fairly stated except for the equipment, which has a fair value of $225,000 and a remaining life of five years. Any remaining excess is goodwill. Hill Company experiences the following changes in retained earnings during 20X1 and 20X2: $ 150,000 $ 60,000 (10,000) Retained earnings, January 1, 20X1. Net income, 20X1.. Dividends paid in 20X1... Balonce, December 31, 20X1. Net income, 20X2.. Dividends paid in 20x2. Balance, December 31, 20x2 50,000 $200,000 $ 40,000 (10,000) 30,000 $230,000 Prepare a determination and distribution of excess schedule for the investment in Hill Com- pany (a value analysis is not needed). Prepare journal entries that Cooke Company would make on its books to record income earned and/or dividends received on its investment in Hill Com- pany during 20X1 and 20X2 under the following methods: simple equity, sophisticated equity, and cost

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