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Unformatted text preview: P2-33 Equity Entries with Differential 6,000 x $35 = $210,000$210,000 45% (150,000 +60,000) = 115,500BVFMV 45%lifeAmort.Land70,00080,0004,500B&E (net)120,000150,00013,500101,350Goodwill97,500Total115,500 a. Journal entry recorded by Hunter Corporation:Investment in Arrow Manufacturing Stock 210,000Common Stock 60,000Additional Paid-In Capital 150,000Record acquisition of Arrow Manufacturing stock. b. Equity-method journal entries recorded by Hunter Corporation in 20X0:(1)Investment in Arrow Manufacturing Stock 36,000Income from Arrow Manufacturing 36,000Record equity-method income: ($80,000 x .45) (2) Cash 9,000 Investment in Arrow Manufacturing Stock 9,000Record dividends from Arrow Manufacturing: ($20,000 x .45) ($20,000 x ....
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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.
- Spring '08