Jackson Corporation purchased shares of Phillips Corporation in the following sequence: The book value of Phillips net

Question:

Jackson purchased shares of Phillips in the following sequence:

Jackson Corporation purchased shares of Phillips Corporation in the following

The book value of Phillips€™ net assets at January 1, 20X6, was $200,000. Each year since Jackson first purchased shares, Phillips has reported net income of $70,000 and paid dividends of $20,000. The amount paid in excess of the book value of Phillips€™ net assets was attributed to the increase in the value of identifiable intangible assets with a remaining life of five years at the date the shares of Phillips were purchased. Phillips has had 10,000 shares of voting common stock outstanding throughout the four-year period.

Required
Give the journal entries recorded on Jackson Corporation€™s books in 20X9 related to its investment in PhillipsCorporation.

Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented... Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...