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Pop Company obtained 100 percent of Snap Company's common stock on January 1, 20x6 by Issuing 12,500 shares of its own common stock, which had

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Pop Company obtained 100 percent of Snap Company's common stock on January 1, 20x6 by Issuing 12,500 shares of its own common stock, which had a $5 par value and a $15 fair value on that date. Snap reported a net book value of $150,000 and its shares had a $20 per share fair value on that date. However, some of its plant assets (with a 5-year remaining life) were undervalued by $20,000 in the company's accounting records. Snap had also developed a customer list with an estimated fair value of $10,000 and a remaining life of 10 years. Pop Company uses the equity-method to account for its investment in Snap. During 20x6 Pop and Snap reported the following: Pop Net Income Dividends Declared Snap $ 300,000 $200,000 25,000 15,000 Required: Prepare each of the journal entries listed below related to Pop's Investment in Snap. 1.Pop's acquisition of Snap. 2.Pop's share of Snap's 20x6 income. 3.Pop's share of Snap's 20x6 dividend income. 4.Pop's amortization of excess acquisition price. Pop Company obtained 100 percent of Snap Company's common stock on January 1, 20x6 by issuing 12,500 shares of its own common stock, which had a $5 par value and a $15 fair value on that date. Snap reported a net book value of $150,000 and its shares had a $20 per share fair value on that date. However, some of its plant assets (with a 5-year remaining life) were undervalued by $20,000 in the company's accounting records. Snap had also developed a customer list with an estimated fair value of $10,000 and a remaining life of 10 years. Pop Company uses the equity-method to account for its investment in Snap. During 20x6 Pop and Snap reported the following: Net Income Dividends Declared Pop Snap $ 300,000 $200,000 25,000 15,000 Required: Prepare each of the journal entries listed below related to Pop's investment in Snap, 1.Pop's acquisition of Snap. 2.Pop's share of Snap's 20x6 income. 3.Pop's share of Snap's 20X6 dividend income. 4.Pop's amortization of excess acquisition price

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