On January 1, 2011, Jensen, Inc. bought 20% of the outstanding common stock of Bosc Systems...

 

Transcribed Image Text:

On January 1, 2011, Jensen, Inc. bought 20% of the outstanding common stock of Bosc Systems for $30 million cash. At the date of acquisition of the stock. Bose net assets had a fair value of $90 million. Their book value was $80 million. The difference was attributable to the fair value of Bose's buildings and land exceeding book value, each accounting for one-half the difference. Bose's net income for the year ended December 31, 2011, was $15 million. Dividends paid by Bose during the year amounted to $3) million. The buildings have a remaining life of 10 years.) Required: Prepare all appropriate entries related to the investment during 2011. On January 1, 2011, Jensen, Inc. bought 20% of the outstanding common stock of Bosc Systems for $30 million cash. At the date of acquisition of the stock. Bose net assets had a fair value of $90 million. Their book value was $80 million. The difference was attributable to the fair value of Bose's buildings and land exceeding book value, each accounting for one-half the difference. Bose's net income for the year ended December 31, 2011, was $15 million. Dividends paid by Bose during the year amounted to $3) million. The buildings have a remaining life of 10 years.) Required: Prepare all appropriate entries related to the investment during 2011.

Answer rating: 100% (QA)

To prepare the appropriate entries related to the investment during 2011 for Jensen Incs investme... View the full answer