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Plug Corporation acquired 3 5 percent of Spark Corporation s stock on January 1 , 2 0 X 8 , by issuing 2 5 ,
Plug Corporation acquired percent of Spark Corporations stock on January X by issuing shares of its $ par value common stock. Spark Corporations balance sheet immediately before the acquisition contained the following items: SPARK CORPORATION Balance Sheet January X Book Value Fair Value Assets Cash & Receivables $ $ Inventory FIFO basis Land Buildings and Equipment net Total Assets $ $ Liabilities & Equities Accounts Payable $ $ Common Stock Retained Earnings Total Liabilities & Equities $ Shares of Plug were selling at $ at the time of the acquisition. On the date of acquisition, the remaining economic life of buildings and equipment held by Spark was years. The amount of the differential assigned to goodwill is not impaired. For the year X Spark reported net income of $ and paid dividends of $ Required: Prepare the journal entries recorded by Plug Corporation during X related to its investment in Spark Corporation. Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
Plug Corporation acquired percent of Spark Corporations stock on January X by issuing shares of its $ par value common stock. Spark Corporations balance sheet immediately before the acquisition contained the following items:
SPARK CORPORATION
Balance Sheet
January X
Book Value Fair Value
Assets
Cash & Receivables $ $
Inventory FIFO basis
Land
Buildings and Equipment net
Total Assets $ $
Liabilities & Equities
Accounts Payable $ $
Common Stock
Retained Earnings
Total Liabilities & Equities $
Shares of Plug were selling at $ at the time of the acquisition. On the date of acquisition, the remaining economic life of buildings and equipment held by Spark was years. The amount of the differential assigned to goodwill is not impaired. For the year X Spark reported net income of $ and paid dividends of $
Required:
Prepare the journal entries recorded by Plug Corporation during X related to its investment in Spark Corporation.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
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