Rod Corporation purchased 100 percent ownership of Stafford Corporation on January 1, 20X4, for $65,000, which was $10,000 above the underlying book value. Half the additional amount was attributable to an increase in the value of land held by Stafford, and half was due to an increase in the value of equipment. The equipment had a remaining economic life of five years on January 1, 20X4. During 20X4, Stafford reported net income of $12,000 and paid dividends of $4,500.
Required:Prepare the journal entries that Rod Corporation recorded during 20X4 related to its investment in Stafford Corporation, assuming Rod uses the equity method in accounting for its investment. need journal entries for the following:Record purchase of Stafford Stock. Record dividend from Stafford. Record equity-method income. Record amortization differential assigned to equipment.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Rod Corporation purchased 100 percent ownership of Stafford Corporation on January 1, 20X4, for $65,000, which was $10,000 above the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $1.25 at the end of the year. Its dividend is expected to grow at a constant rate of 6.00% per year. If Walter's stock currently trades for $16.
Answers (1)
Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $2,565,000. Harding paid $770,000 and issued a note payable for the remainder of the cost.
Answers (1)
A fair die is rolled. if it comes up 1 or 2 you win $2. if it comes up 3, 4, 5, or 6, you lose $1. calculate the expected winnings. select one: a. $1.00 b. $0.00 c. $0.25 d. $0.50
Answers (1)
Black Diamond Company produces snow skis. Each ski requires 2 pounds of carbon fiber. The company's management predicts that 6,100 skis and 7,100 pounds of carbon fiber will be in inventory on June 30 of the current year and that 161,000 skis will
Answers (1)
Which of the following is not affected by a person's credit score? A. Federal income tax B. Credit card rates C. Apartment rent D. Ability to get a cell phone contract
Answers (1)
New Questions in Business
An Insurance company is a business in which it pays to the company if there is a loss, damage, treatments or injury for the payment of premium amount. It calculates the risks that has occurred and pays to compensate the premium amount.
Answers (1)
Pool Line is the manufacturer of a pool cleaning system that has been called by the pool construction industry, "the miracle we have waited a lifetime for." The cleaning system is very effective and recommended by all consumer magazines.
Answers (1)
Use the following example to answer the following questions: Imagine that Stella deposits $25,000 in currency (which she had been storing in her closet) into her checking account at the bank.
Answers (1)
Barr Corp. started a long-term construction project in 20X0. The following data relate to this project: Contract price $4,200,000 Costs incurred in 20X0 $1,750,000 Estimated costs to complete $1,750,000 Progress billings $900,000 Collections on
Answers (1)
Bob contributed a building with an adjusted basis to Bob of $50,000 and a fair market value of $150,000 subject to a mortgage of $120,000 in exchange for a 30 percent interest in the Alpha Partnership. Alpha will assume the mortgage on the building.
Answers (1)