Question

Roller Corporation purchased 100 percent ownership of Steam Company on January 1, 20X5, for $270,000. On that date, the book value of Steam's reported net assets was $200,000. The excess over book value paid is attributable to depreciable assets with a remaining useful life of 10 years. Net income and dividend payments of Steam in the following periods were


Required
Prepare journal entries on Roller Corporation's books relating to its investment in Steam Company for each of the three years, assuming it accounts for the investment using
(a) The cost method and
(b) The equitymethod.


$1.99
Sales0
Views204
Comments0
  • CreatedMay 23, 2014
  • Files Included
Post your question
5000