Question
Please help me to understand step by step of this question i got answer from one tutor but don't understand where the numbers come from.
Please help me to understand step by step of this question
i got answer from one tutor but don't understand where the numbers come from. That's tutor said he / she can't submit her answer on comment section so I decided to upload my question again. Please help. Thank you so much
this is the question
On January 1, 2013, Vacker Co. acquired 70% of Carper Inc. by paying $650,000. This included a $20,000 control premium. Carper reported common stock on that date of $420,000 with retained earnings of $252,000. A building was undervalued in the company's financial records by $28,000. This building had a ten-year remaining life. Copyrights of $80,000 were to be recognized and amortized over 20 years. Carper earned income and paid cash dividends as follows Net income Dividends paid 2013 105,000 54,600 2014 134,400 61,600 2015 154,000 84,000 On December 31, 2015, Vacker owed $30,800 to Carper. There have been no changes in Carpers common stock account since the acquisition. Required: If the equity method had been applied by Vacker for this acquisition, what were the consolidation entries needed as of December 31, 2015?
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