Prussman Company acquires a 30% interest in Sully Corporation and concludes that it has significant influence over Sully. The book value of Sullys stockholders equity is $600,000 and Prussman pays $300,000 for the investment. An excess of purchase price over book value was attributable to an unrecorded customer list worth $400,000, with a useful life of 10 years. After the acquisition, Sully reported net income of $150,000 and declared and paid a dividend of $40,000. At the end of the year, Prussman sells the investment for $350,000. Instructions:

a. Prepare the allocation of the acquisition in good form (6 points):

b. Journalize the entry to record the equity acquisition of Sully (3 points):

c. Journalize the entry to record the declaration of the Sully dividend (2 point):

d. Journalize the entry to record the receipt of the Sully dividend (2 point): 3

e. Journalize the proportionate share of Sullys net income for the year (3 points):

f. Journalize the amortization of the excess amortization (3 points):

g. Journalize the sale of Sully at the end of the year (6 points):