Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $189,000. The trial balances for the two companies on December 31, 20X7, included the following amounts:

	Prince Corporation									Sword Company
Item	Debit				Credit					Debit				Credit
Cash		$	88,000								$	28,000
Accounts Receivable			55,000									60,000
Inventory			178,000									117,000
Land			86,000									23,000
Buildings and Equipment			495,000									157,000
Investment in Sword Company			237,000
Cost of Goods Sold			495,000									257,000
Depreciation Expense			24,000									14,000
Other Expenses			64,000									64,000
Dividends Declared			52,000									30,000
Accumulated Depreciation						$	150,000								$	70,000
Accounts Payable							70,000									22,000
Mortgages Payable							181,000									116,000
Common Stock							297,000									41,000
Retained Earnings							309,000									85,000
Sales							689,000									416,000
Income from Sword Company							78,000
		$	1,774,000			$	1,774,000				$	750,000			$	750,000

Additional Information

1. On January 1, 20X7, Sword reported net assets with a book value of $126,000. A total of $30,000 of the acquisition price is applied to goodwill, which was not impaired in 20X7.
2. Swords depreciable assets had an estimated economic life of 11 years on the date of combination. The difference between fair value and book value of tangible assets is related entirely to buildings and equipment.
3. Prince used the equity-method in accounting for its investment in Sword.
4. Detailed analysis of receivables and payables showed that Sword owed Prince $17,000 on December 31, 20X7.

Required: a. Prepare all journal entries recorded by Prince with regard to its investment in Sword during 20X7. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• A

  Record the initial investment in Sword Co.

• B

  Record Prince Corp's share of Sword Co.'s 20X7 income.

• C

  Record Prince Corp's share of Sword Co.'s 20X7 dividend.

• D

  Record the amortization of the excess acquisition price.