Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $195,000. 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 $ 89,000 $ 36,000 Accounts Receivable 57,000 62,000 Inventory 175,000 113,000 Land 87,000 31,000 Buildings and Equipment 491,000 164,000 Investment in Sword Company 219,000 Cost of Goods Sold 491,000 257,000 Depreciation Expense 22,000 12,000 Other Expenses 75,000 75,000 Dividends Declared 55,000 29,000 Accumulated Depreciation $ 148,000 $ 60,000 Accounts Payable 67,000 32,000 Mortgages Payable 185,000 154,000 Common Stock 290,000 42,000 Retained Earnings 325,000 91,000 Sales 693,000 400,000 Income from Sword Company 53,000 $ 1,761,000 $ 1,761,000 $ 779,000 $ 779,000

Additional Information On January 1, 20X7, Sword reported net assets with a book value of $133,000. A total of $29,000 of the acquisition price is applied to goodwill, which was not impaired in 20X7. 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. Prince used the equity-method in accounting for its investment in Sword. Detailed analysis of receivables and payables showed that Sword owed Prince $27,000 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.)

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