For the year ended on December 31, 2010, XYZ had net income of $90,000 and paid dividends

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For the year ended on December 31, 2010, XYZ had net income of $90,000 and paid dividends of $40,000. Prepare the journal entries to record the result using EQUITY METHOD of accounting.

Show your calculation for the adjustments of net income.

The BV-FV difference in Plant Assets is as follows:

Land ................................... $60,000

Building (20-yr life).... 80,000

Machinery (5-yr life)... 50,000

Total...........190,000

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Horngrens Accounting

ISBN: 978-0133855371

10th Canadian edition Volume 1

Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood

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Question Posted: Jan 08, 2013 05:37 AM

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For the year ended on December 31, 2010, XYZ had net income of $90,000 and paid dividends

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Horngrens Accounting

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