On January 1 , 2 0 2 3 , Fisher Corporation purchased 4 0 percent ( 7
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Question:
On January Fisher Corporation purchased percent shares of the common stock of Bowden, Incorporated, for $ in cash and began to use the equity method for the investment. The price paid represented a $ payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a year remaining life. All other assets were considered appropriately valued on Bowden's books.
Bowden declares and pays a $ cash dividend to its stockholders each year on September Bowden reported net income of $ in and $ in Each income figure was earned evenly throughout its respective years.
On July Fisher sold percent shares of Bowden's outstanding shares for $ in cash. Although it sold this interest, Fisher maintained the ability to significantly influence Bowden's decisionmaking process.
Required:
Prepare the journal entries for Fisher for the years of and
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
Record the acquisition of Bowden's shares.
Record the annual dividend declared and received from Bowden.
Record the accrual of income for
Record amortization for
Record the accrual of income through
Record amortization through
Record the sale of the shares.
Record annual dividend declared and received.
Record the accrual of income for the second half of the year.
Record the amortization for the second half of the year.
Related Book For
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
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