LO $1-$ Chapter $9$

$($Continued$)$

Abyssinian Corporation and Norwegian Investment Enterprises both follow ASPE. Norwegian

Investment Enterprises will use the equity method to account for this investment.

Required:

Calculate the portion of the purchase price paid by Norwegian Investment

Enterprises for the Abyssinian shares that represents goodwill $(3$ marks$).$

Prepare all journal entries required by Norwegian Investment Enterprises to

account for its investment in Abyssinian Corporation for the $2024$ and $2025$ years

$(7$ marks$).$