Part I Lynbrook, Inc. acquired 40,000 of the 100,000 outstanding shares of ScanHouse Corporation on April...

 

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Part I Lynbrook, Inc. acquired 40,000 of the 100,000 outstanding shares of ScanHouse Corporation on April 1, 2021, for $400,000 and obtained significant influence. The following information concerning ScanHouse is available on the date of acquisition: Book Value Fair Value Depreciable assets (remaining life, 15 years) 600,000 $ 700,000 Other assets 500,000 1,100,000 $ 450,000 1,150,000 Total Liabilities 300,000 $ 320,000 Common stock 250,000 Retained earnings 550,000 Total $ 1,100,000 Subsequently, ScanHouse paid a cash dividend of $40,000 on August 31, 2021, and reported net income $155,000 on December 31, 2021. Required: 1. Prepare journal entries for Lynbrook to record the preceding information. 2. What is the balance in Lynbrook's investment account on December 31, 2021? Show all computations. Part I Lynbrook, Inc. acquired 40,000 of the 100,000 outstanding shares of ScanHouse Corporation on April 1, 2021, for $400,000 and obtained significant influence. The following information concerning ScanHouse is available on the date of acquisition: Book Value Fair Value Depreciable assets (remaining life, 15 years) 600,000 $ 700,000 Other assets 500,000 1,100,000 $ 450,000 1,150,000 Total Liabilities 300,000 $ 320,000 Common stock 250,000 Retained earnings 550,000 Total $ 1,100,000 Subsequently, ScanHouse paid a cash dividend of $40,000 on August 31, 2021, and reported net income $155,000 on December 31, 2021. Required: 1. Prepare journal entries for Lynbrook to record the preceding information. 2. What is the balance in Lynbrook's investment account on December 31, 2021? Show all computations.

Answer rating: 100% (QA)

Part 1 1 Date Account Titles Explanation Debit Credit April 12021 Investment in Sc... View the full answer