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Unformatted text preview: Journal Entries: Crain Machinics' Investment in Downey Enterprises Investment in Downey 20,000,000,000,000 Cash 3,645,000 Extraordinary Gain from Acquisition of Downey 19,999,996,355,000 (To record acquisition using equity method) Percentage ownership 75% Book Value 4,000,000 16,000,000,000,000 Increase in Fair values Inventory 300,000 1,200,000,000,000 Plant and Equipment 700,000 2,800,000,000,000 Value of investment 20,000,000,000,000 Investment in Downey 1,130,000,000,000 Investment Income 1,130,000,000,000 (To record share in Downey's income less adjustments) Downey Income 635,000 2,540,000,000,000 Inventory fair value amortization (1,200,000,000,000) Plant & Equipment fair value amortization (210,000,000,000) Investment Income 1,130,000,000,000 Cash 75,000 Investment in Downey 75,000 (To record dividends received) Investment in Downey Consolidated Worksheet_x000D_Crane Mechanics Downey Enterprises_x000D_December 31, 2005_x000D__x000D_...
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This note was uploaded on 06/25/2011 for the course ACC 539 $21 taught by Professor Mr.someone during the Spring '09 term at University of Phoenix.
- Spring '09