Question: Paper Company acquired 80 percent of Scissor Company s outstanding common

Paper Company acquired 80 percent of Scissor Company's outstanding common stock for
$296,000 on January 1, 20X8, when the book value of Scissor's net assets was equal to $370,000. Problem 3-37 summarizes the first year of Paper's ownership of Scissor.
In Problem 3-37

Paper uses the equity method to account for investments. The following trial balance summarizes the financial position and operations for Paper and Scissor as of December 31, 20X9:

a. Prepare any equity method journal entry(ies) related to the investment in Scissor Company during 20X9.
b. Prepare a consolidation worksheet for 20X9 in goodform.
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  • CreatedMay 23, 2014
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