12 On 1 1 X7 Sharpco purchased 10 percent of Astco s common stock for 70 000 an amount equal to the book value of Astco s underlying net assets Sharpco appropriately used the cost method of accounting for its investment Sharpco purchased an additional 25 percent of Astco s common stock on 1 1 x9 for 200 000 with any excess of cost over the book value of the underlying net assets attributable to a patent with a life of 10 years Sharpco can now exercise significant influence over the opera

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1 Record the journal entry for the reissuance of the treasury ... View the full answer