Week 1 - Problem 1-25 This template can be used to complete...

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This template can be used to complete the identified problem. Note that "??" indicates you should fi Schedule 1: Allocation of acquisition price and related amortization Acquisition price $210,000 Book Value of Stokes Company 160000 Payment in excess of book value $50,000 Amount Life (Yrs) Building 16000 10 1600 Royalty Agreement 34000 20 1700 Total Annual Amortization 3300 Schedule 2: Deferral of Unrealized Gain - 2008 Inventory remaining at end of year 15000 Gross profit percentage 0.33 Gross profit remaining in inventory 5000 Ownership % 40% Unrealized gain to be deferred until 2009 2000 Schedule 3: Deferral of Unrealized Gain - 2009 Inventory remaining at end of year $24,000 Gross profit percentage 0.38 Gross profit remaining in inventory 9000 ?? 40% Unrealized gain to be deferred until 2010 3600 Journal Entries (note all entries should have an appropriate description) Date Account DR CR 1/1/2008 Investment in Stokes Co 210000 Cash 210000 Investment in Stokes Co During 2008 Cash
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Week 1 - Problem 1-25 This template can be used to complete...

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