P1-16+H+10e+Hand-In

P1-16+H+10e+Hand-In - P1-16.H 10e(20 Minutes(Equity entries...

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: P1-16.H 10e (20 Minutes) (Equity entries for one year, includes conversion to equity method)The 2010 purchase must be restated to the equity method.FIRST PURCHASE—JANUARY 1, 2010Purchase price of Denton stock............................................$210,000Book value of Denton stock ($1,700,000 × 10%)..................(170,000)Cost in excess of book value.................................................$40,000Excess cost assigned to undervalued land($100,000 × 10%).................................................................(10,000)Trademark...............................................................................$30,000 Life of trademark....................................................................10 yearsAnnual amortization...............................................................$3,000BOOK VALUE—DENTON—JANUARY 1, 2010January 1, 2010 book value (given).......................................$1,700,0002010 Net income.....................................................................2010 Net income....
View Full Document

This note was uploaded on 02/06/2012 for the course ACCOUNTING AC541 taught by Professor White during the Spring '11 term at BU.

Page1 / 2

P1-16+H+10e+Hand-In - P1-16.H 10e(20 Minutes(Equity entries...

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