Question
In: Accounting
Palmer Corporation acquired 70 percent of Krown Corporation’s ownership on January 1, 20X8, for $166,600. At...
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Palmer Corporation acquired 70 percent of Krown Corporation’s ownership on January 1, 20X8, for $166,600. At that date, Krown reported capital stock outstanding of $139,000 and retained earnings of $99,000, and the fair value of the noncontrolling interest was equal to 30 percent of the book value of Krown. During 20X8, Krown reported net income of $41,400 and comprehensive income of $47,400 and paid dividends of $36,400. |
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Present all equity-method entries that Palmer would have recorded in accounting for its investment in Krown during 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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Solutions
ekkarill92 answered 1 year agoRelated Solutions
Mill Corporation acquired 100 percent ownership of Roller Company on January 1, 20X8, for $118,000. At...
Mill Corporation acquired 100 percent ownership of Roller
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Trial balance data for Mill and
Roller...
Mill Corporation acquired 100 percent ownership of Roller Company on January 1, 20X8, for $125,000. At...
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Company on January 1, 20X8, for $125,000. At that date, the fair
value of Roller’s buildings and equipment was $19,000 more than the
book value. Buildings and equipment are depreciated on a 5-year
basis. Although goodwill is not amortized, Mill’s management
concluded at December 31, 20X8, that goodwill involved in its
acquisition of Roller shares had been impaired and the correct
carrying value was $2,600.
Trial balance data for Mill and
Roller...
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values of Slice’s assets and liabilities were equal, except for
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was $24,000 on the acquisition date. Buildings and...
Pie Corporation acquired 75 percent of Slice Company’s ownership on January 1, 20X8, for $96,000. At...
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on January 1, 20X8, for $96,000. At that date, the fair value of
the noncontrolling interest was $32,000. The book value of Slice’s
net assets at acquisition was $91,000. The book values and fair
values of Slice’s assets and liabilities were equal, except for
Slice’s buildings and equipment, which were worth $18,200 more than
book value. Accumulated depreciation on the buildings and equipment
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ownership on January 1, 20X8, for $93,000. At that date, the fair
value of the noncontrolling interest was $31,000. The book value of
Best’s net assets at acquisition was $90,000. The book values and
fair values of Best’s assets and liabilities were equal, except for
Best’s buildings and equipment, which were worth $18,000 more than
book value. Accumulated depreciation on the buildings and equipment
was $24,000 on the acquisition date.Buildings and equipment...
32. Patriot Corporation acquired 75% ownership of Seahawk Corporation on January 1, 20X8, for $300,000. The...
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Corporation on January 1, 20X8, for $300,000. The fair value of the
noncontrolling interest was $100,000. At that date, Seahawk
reported common stock outstanding of $100,000 and retained earnings
of $180,000. The differential is assigned to equipment, which had a
fair value $50,000 greater than book value and a remaining economic
life of 5 years at the date of the business combination. The
remaining excess is considered goodwill. Seahawk reported net
income...
Parent Corporation acquired a 70 percent interest in Subsidiary Corporation’s outstanding voting common stock on January...
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Corporation’s outstanding voting common stock on January 1, 2011,
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earnings. The difference between the fair value of Subsidiary and
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On December 31, 20X8, the trial balances of the two companies
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Item
Debit
Credit...
Player Company acquired 70 percent ownership of Scout Company’s voting shares on January 1, 20X2. During...
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$39,000. On December 31, 20X5, Scout’s ending inventory included
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Peanut Corporation acquired 80 percent of Snoopy Company's voting shares on January 1, 20X8, at underlying...
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