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Pirate Corporation purchased 100 percent ownership of ShipCompany on January 1, 20X5, for $280,000. On that date, the bookvalue of Ship's reported net assets was

Pirate Corporation purchased 100 percent ownership of ShipCompany on January 1, 20X5, for $280,000. On that date, the bookvalue of Ship's reported net assets was $207,000. The excess overbook value Required: Prepare journal entries on Pirate Corporation's books relating to its investment in Ship Company for each of the three years, assuming it accounts for the investment using the equity method. 1 answer

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