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Washington Company purchased 1 0 0 % of Jefferson Company on January 1 , 2 0 X 1 for $ 1 , 0 0 0
Washington Company purchased of Jefferson Company on January X for $ when the book value of Jefferson
was $ with the excess caused by Equipment that was undervalued by $ and Goodwill. The Equipment had a four yea
In x Washington sold inventory to Jefferson still in the inventory of Jefferson at year end with a profit of $
During X Washington sold to Jefferson inventory costing $ for $
At December Jefferson still had $ cost to Jefferson of that inventory in its inventory.
Jefferson reported $ of income in and paid dividends of $
a Prepare a schedule of Excess of Cost over Book Value on the date of purchase.
Determine the annual amortization expense in this schedule.
b For X prepare on the books of Washington the full equity method journal entries.
Dr
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