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2-33 - P2-33 Equity Entries with Differential 6,000 x $35 =...

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P2-33 Equity Entries with Differential   6,000 x $35 = $210,000 $210,000 – 45% (150,000 +60,000) = 115,500 BV FMV   45% life Amort. Land 70,000 80,000 4,500 B&E (net) 120,000 150,000 13,500 10 1,350 Goodwill 97,500 Total 115,500          a. Journal entry recorded by Hunter Corporation: Investment in Arrow Manufacturing Stock  210,000 Common Stock                                60,000 Additional Paid-In Capital                150,000 Record acquisition of Arrow Manufacturing stock.             b. Equity-method journal entries recorded by Hunter Corporation in  20X0: (1) Investment in Arrow Manufacturing Stock 36,000 Income from Arrow Manufacturing           36,000 Record equity-method income: ($80,000 x .45)  (2)   Cash                                    9,000                     Investment in Arrow Manufacturing Stock         9,000 Record dividends from Arrow Manufacturing:
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                   ($20,000 x .45)
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