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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 , 0
Plug Corporation acquired percent of Spark Corporation's stock on January X by issuing shares of its $ par value
common stock. Spark Corporation's balance sheet immediately before the acquisition contained the following items:
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:
a Prepare the journal entries recorded by Plug Corporation during 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.
Journal entry worksheet
Record the expiration of the differential assigned to inventory.
Note: Enter debits before credits.
Journal entry worksheet
Record the entry to amortize the differential assigned to buildings and
equipment.
Note: Enter debits before credits.
b What balance will Plug report as its investment in Spark at December X
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