Question: EXERCISE 4 - 9 Interim Purchase, Equity Method LO 2 LO 6 On October 1 , 2 0 2 0 , Para Company purchased 9

EXERCISE 4-9
Interim Purchase, Equity Method LO 2 LO 6
On October 1,2020, Para Company purchased 90% of the outstanding
common stock of Star Company for $210,000. Additional data concerning Star
Company for 2020 follows:
Any difference between book value and the value implied by the purchase
price relates to goodwill. Para Company uses the partial equity method to
record its investment in Star Company.
Required:
A. Prepare on Para Company's books journal entries to record the
investment-related activities for 2020.
B. Prepare workpaper eliminating entries for a workpaper on December 31,
Star Company's net income is earned evenly throughout the year.
Answer Both parts of the question in excel workbook format, thanks.
EXERCISE 4-9 Interim Purchase, Equity Method LO 2 LO 6 On

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