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Jawn

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Submitted By jennifer123987
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Homework Chapters 4-6 4-1) A 2009 Investment in Song Company 387,000 Cash 387,000 Cash 20,000 Dividend Income 20,000 2010 Cash 40,000 Dividend Income 40,000 2011 Cash 28,000 Investment in Song Company 28,000

Partial Equity Method 2009 Investment in Song Company 387,000 Cash 387,000 Investment in Song Company 50,800 Equity Income 50,800 Cash 20,000 Investment in Song Company 20,000

2010 Investment in Song Company 42,000 Equity Income 42,000 Cash 40,000 Investment in Song Company 40,000 2011 Equity Loss 44,000 Investment in Song Company 44,000 Cash 28,000 Investment in Song Company 28,000

Parent Noncontrolling Entire Share Share Value Cost of investment 387,000 96,750 483,750 * Book value acquired($475,000 x .80) 380,000 95,000 475,000 Difference between Implied and Book value 7,000 1,750 8,750 Allocated to undervalued depreciable assets (7,000) (1,750) (8,750) Balance - 0 - - 0 - - 0 - * $387,000/.80 Amortization per year Parent ($7,000/10) = $700 2009 Investment in Song Company 387,000 Cash 387,000 Investment in Song Company 50,800 Equity Income 50,800 Equity Income 700 Investment in Song Company 700 Cash 20,000 Investment in Song Company 20,000 2010 Investment in Song Company 42,000 Equity Income 42,000 Equity Income 700 Investment in Song Company 700 Cash 40,000 Investment in Song Company 40,000 2011

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