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During review of the adjusting entries to be recorded onDecember 31, 20X8, Grand Corporation discovered that it hadinappropriately been using the cost method in accounting for itsinvestment in Case Products Corporation. Grand purchased 100percent ownership of Case Products on January 1, 20X6, for $58,000,at which time Case Products reported retained earnings of $11,000and capital stock outstanding of $29,000. The differential wasattributable to patents with a life of eight years. Income anddividends of Case Products were:YearNet IncomeDividends20X6$19,000$7,00020X727,0009,00020X835,0009,000Required:Prepare the correcting entry required on December 31, 20X8, toproperly report the investment under the equity method, assumingthe books have not been closed. Case Products' dividends weredeclared in early November and paid in early December each year.(If no entry is required for a transaction/event, select "Nojournal entry required" in the first account field.)