On January 1 2011 Ruark Corporation acquired a 40 percent
On January 1, 2011, Ruark Corporation acquired a 40 percent interest in Batson, Inc., for $210,000. On that date, Batson’s balance sheet disclosed net assets of $360,000. During 2011, Batson reported net income of $80,000 and paid cash dividends of $25,000. Ruark sold inventory costing $30,000 to Batson during 2011 for $40,000. Batson used all of this merchandise in its operations during 2011.
Prepare all of Ruark’s 2011 journal entries to apply the equity method to this investment.

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help