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Will Company acquired 60% of the outstanding common stock of BB Company on January 2, 2014 for $750,000 At that time, BB's total stockholders' equity
Will Company acquired 60% of the outstanding common stock of BB Company on January 2, 2014 for $750,000 At that time, BB's total stockholders' equity amounted to $900,000, BBCompany reported net income and dividends for the last two years as follows: 2015 $130,000 140,000 80,000 2014 Reported net income Dividends distributed 55,000 The difference between cost and the book value of equity acquired was attributed solely to a machine, with a 10- year expected life. Straight-line depreciation method was used. Required A. Prepare journal entries for Will Company for 2014 and 2015 using the cost method (6 points) Ke puipor jourmal entries for Will Company for201dnthe ( points). B. Prepare journal entries for Will Company for 2014 and 2015 using the partial equity method (6 points) C. Prepare journal entries for Will Company for 2014 and 2015 using the complete equity method (6 points) 1-2
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