2-32 - P232 Complex Differential a. Essex Company 20X2...

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Unformatted text preview: P232 Complex Differential a. Essex Company 20X2 equitymethod income: $165,000 30% (150,000 +20,000 + 250,000) = 39,000 BV Inventory Land B&E (net) Patent Total Journal entries recorded by Essex: (1) Investment in Tolliver 165,000 50,000 Common Stock Additional PaidIn Capital -- 115,000 Record purchase of Tolliver Company stock. 120,000 50,000 260,000 FMV 150,000 65,000 320,000 25,000 30% 9,000 4,500 18,000 7,500 39,000 12 10 1,500 750 11,250 life fifo Amort. 9,000 (2) Investment in Tolliver Income from Tolliver Record equitymethod income (30% x 80,000) 24,000 24,000 (3) Cash Investment in Tolliver 2,700 2,700 Record dividend from Tolliver Company ( 30% x $9,000) (4) Income from Tolliver Investment in Tolliver Amortize purchase differential 11,250 11,250 P232 (pg 2) b. Computation of investment account balance on December 31, 20X2: Investment in Tolliver 165,000 2,700 24,000 11,250 bal. 175,050 ...
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This note was uploaded on 04/18/2008 for the course ACCT cost taught by Professor Staff during the Spring '08 term at Oklahoma State.

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2-32 - P232 Complex Differential a. Essex Company 20X2...

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