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Understanding Financial Accounting
On January 1, 2024, Casey Incorporated acquired 25% of the

On January 1, 2024, Casey Incorporated acquired 25% of the outstanding common shares of List Company Ltd.

Question:

On January 1, 2024, Casey Incorporated acquired 25% of the outstanding common shares of List Company Ltd. The details of the acquisition and the earnings for List are as follows:Assume that the net assets’ fair market value on January 1, 2024, is equal to their carrying amounts.

Required
Prepare the journal entries that Casey will make in 2024 to account for this investment assuming it uses the equity method.

Transcribed Image Text:

Carrying value of net assets as at January 1, 2024 Acquisition price Earnings for 2024 Dividends declared and paid during 2024 List Co. $33,200,000 8,300,000 6,500,000 1,200,000

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Understanding Financial Accounting

ISBN: 9781119715474

3rd Canadian Edition

Authors: Christopher D. Burnley

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Question Posted: Jan 31, 2023 03:54 AM

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