Barney Equipment Corporation acquired the following equity investments at the beginning of Year 1. Barney does not
Question:
Barney Equipment Corporation acquired the following equity investments at the beginning of Year 1. Barney does not have significant influence over the investees. Both companies are publicly traded.
Required
a. Prepare the journal entry to record the acquisition of the investments.
b. Prepare the journal entry to record the end of Year 1 fair value adjustment.
c. Assume that Barney sells 5,000 Boris Company shares for $50 per share at the beginning of Year 2. Prepare the journal entry required to record the sale. Barney does not correct the fair value adjustment account at this time.
d. Prepare the journal entry to record the end of Year 2 fair value adjustment.
CorporationA 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...
Step by Step Answer:
Intermediate Accounting
ISBN: 978-0134730370
2nd edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella