Black company purchased 25% of white company for $750,000 in cash on January 1, 2019. On the day of purchase, white book value was $2,500,000. Any excess of cost over book value is due to undervalued equipment and amortized over five years. Black company purchased 25% of white company for $750,000 in cash on January 1, 2019. On the day of purchase, white book value was $2,500,000. Any excess of cost over book value is due to undervalued equipment and amortized over five years. journalize the following for 2019 on the books of black, assuming black uses the equity method:

a. White reported a total net income of $500,000. Journalize the recording of the correct income on the books of black using the equity method.
b. total dividends paid by way amount to $120,000.
c. The market value of blacks investment in White had climb to $850,000 at year end.
d. Black purchased by issuing 100,000 shares of its two dollars part stock with a market value of nine dollars per share an additional 30% of white.

Answer rating: 100% (QA)

C The market value of blacks investment in White had climbed to 850000 at yearend Moreover Africa has tremendous economic potential and offers rewardi... View the full answer