Chap002_Classproblems_solu

Chap002_Classproblems_solu - Solutions to Chapter 2 Inclass...

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Solutions to Chapter 2 In‐class Problems E2-16 Differential Assigned to Land and Equipment Journal entries recorded by Rod Corporation: (1) Investment in Stafford Corporation Stock 65,000 Cash 65,000 Record purchase of Stafford Stock. (2) Cash 4,500 Investment in Stafford Corporation Stock 4,500 Record dividend from Stafford: $15,000 x .30 (3) Investment in Stafford Corporation Stock 12,000 Income from Stafford 12,000 Record equity-method income: $40,000 x .30 (4) Income from Stafford 1,000 Investment in Stafford Corporation Stock 1,000 Amortize differential assigned to equipment.
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Solutions to Chapter 2 In‐class Problems P2-32 Complex Differential a. Essex Company 20X2 equity-method income:
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This note was uploaded on 05/01/2010 for the course MGMT 503 taught by Professor Staff during the Spring '08 term at Purdue University-West Lafayette.

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Chap002_Classproblems_solu - Solutions to Chapter 2 Inclass...

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