4-28 - P4-28 Consolidation Workpaper at End of First Year of

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: P4-28 Consolidation Workpaper at End of First Year of Ownership$128,000 100% (60,000 +40,000) = 28,000BVFMV100%lifeAmort.B&E (net)20,000102,000Goodwill8,0005,500Total28,000a.Journal entries recorded by Parent(1)Cash16,000Investment in Lake Corporation Stock16,000Record dividends from subsidiary.(2)Investment in Lake Corporation Stock24,000Income from Subsidiary24,000Record equity-method income.(3)Income from Subsidiary2,000Investment in Lake Corporation Stock2,000Amortize differential: $20,000 / 10 yearsNo entries for goodwill impairmenta. Eliminating entries:E(1)Income from Subsidiary22,000Dividends Declared16,000Investment in Roller Company Stock6,000Eliminate income from subsidiary.E(2)Common Stock Roller Company60,000Retained Earnings, January 140,000Differential28,000Investment in Roller Company Stock128,000Eliminate beginning investment balance.E(3)Buildings and Equipment20,000Goodwill8,000Differential28,000Assign beginning differential....
View Full Document

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.

Page1 / 2

4-28 - P4-28 Consolidation Workpaper at End of First Year of

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online