On January 1, 2013, Ruark Corporation acquired a 40 percent interest in Batson, Inc , for $210,000 On that date, Batson 's balance sheet disclosed net assets with both a fair and book value of $360,000 During 2013, Batson reported net income of $80,000 and paid cash dividends of $25,000 Ruark sold ...

Purchase price of Batson stock 210000 Book value of Batson stock 360000 4 ...

On January 1, 2013, Ruark Corporation acquired a 40 percent interest in Batson, Inc., for $210,000. On

Question:

On January 1, 2013, Ruark acquired a 40 percent interest in Batson, Inc., for $210,000. On that date, Batson's disclosed net assets with both a fair and book value of $360,000. During 2013, Batson reported net income of $80,000 and paid cash dividends of $25,000. Ruark sold inventory costing $30,000 to Batson during 2013 for $40,000. Batson used all of this merchandise in its operations during 2013. Prepare all of Ruark's 2013 journal entries to apply the equity method to this investment.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...