473-9-1 Compute the balance in Peel's Investment in Split Products Company...
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473-9-1
Compute the balance in Peel's Investment in Split Products Company Stock account on December 31, 208. Peel Corporation purchased 60 percent of Split Products Company's shares on December 31,207, for $216,000. At that date, the fair value of the noncontrolling interest was $144,000. On January 1,209, Peel purchased an additional 20 percent of Split's common stock for $101,000. Summarized balance sheets for Split on the dates indicated are as follows: Split paid dividends of $22,000 in each of the three years. Peel uses the equity method in accounting for its investment in Split and amortizes all differentials over 10 years against the related investment income. All differentials are assigned to patents in the consolidated financial statements. Prepare the consolidation entries needed as of December 31,209, to complete a worksheet. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. A Record the basic consolidation entry. B Record the entry to amortize the excess value reclassification. c Record the excess value (differential) reclassification entry. Compute the balance in Peel's Investment in Split Products Company Stock account on December 31, 209
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Compute the balance in Peel's Investment in Split Products Company Stock account on December 31, 208. Peel Corporation purchased 60 percent of Split Products Company's shares on December 31,207, for $216,000. At that date, the fair value of the noncontrolling interest was $144,000. On January 1,209, Peel purchased an additional 20 percent of Split's common stock for $101,000. Summarized balance sheets for Split on the dates indicated are as follows: Split paid dividends of $22,000 in each of the three years. Peel uses the equity method in accounting for its investment in Split and amortizes all differentials over 10 years against the related investment income. All differentials are assigned to patents in the consolidated financial statements. Prepare the consolidation entries needed as of December 31,209, to complete a worksheet. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. A Record the basic consolidation entry. B Record the entry to amortize the excess value reclassification. c Record the excess value (differential) reclassification entry. Compute the balance in Peel's Investment in Split Products Company Stock account on December 31, 209
