2-26 - P2-26 Amortization of Purchase Differential $120,000...

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Unformatted text preview: P2-26 Amortization of Purchase Differential $120,000 30% (100,000 + 150,000) = $45,000 BV FV 30% of Difference Building & 300,000 360,000 18,000 Equip Copyrights 27,000 45,000 Journal entries recorded by Ball Corporation: (1) Investment in Krown Company Stock Preferred Stock Additional Paid-In Capital -- Preferred Stock Record purchase of Krown Company stock. (2) Cash Investment in Krown Company Stock Record dividend from Krown Company: $10,000 x .30 (3) Investment in Krown Company Stock Income from Krown Company Record equity-method income. (4) Income from Krown Company Investment in Krown Company Stock Amortize purchase differential assigned to buildings and equipment: [($360,000 - $300,000) x .30] / 15 years (5) Income from Krown Company Investment in Krown Company Amortize purchase differential assigned to copyrights: $27,000 / 8 years 120,000 50,000 70,000 life 15 8 1,200 3,375 3,000 3,000 12,000 12,000 1,200 1,200 3,375 3,375 ...
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