On 3 January 2 0 X 4 , Windsor Company purchased 2 0 % of the shares
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Question:
On January X Windsor Company purchased of the shares of Brampton for $ cash. Windsor will use the equity method. On this date, Brampton has $ of assets, $ of liabilities, and $ of equity. Book values reflect fair values except for $ of equipment, which has a fiveyear life and a fair value of $ In X Brampton pays $ of total dividends and reports earnings of $
Required:
Calculate goodwill on acquisition and the annual extra depreciation on investee equipment at fair value.
Prepare X journal entries for Windsor Company. If no entry is required for a transactionevent select No journal entry required" in the first account field.
Record the investment made in Brampton Corp.
Record the Investment revenue.
Record the receipts of cash dividends paid by Brampton.
At the end of X what is the balance in the investment account?
Related Book For
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
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