The KLM Corporation reported the following data for the year ended 2021: Sold building with original cost of $400,000,000 (50% depreciated) for $275,000,000 in cash. - Acquired land of total cost $500,000,000. Paid $200,000,000 in cash and signed a note payable for the balance due in 3 years.

On 1/1/2019, the Manhattan Construction Company entered in a contract with New York City to build a municipal building with contract price of $8,000,000 which is expected to be completed at end of 2021.The following is summary information

A. Prepare the journal entries for this investment by Marshal during the year ended 21/31/2020. and the general ledger account of this investment on 12/31/2020.

B. Was there any goodwill considered in the purchase price and how much?

C. Make the necessary adjustment needed for Marshal to adjust investment income for the market value difference of the buildings.

Answer rating: 100% (QA)

Part A Journal entries Debit Cash account 200000000 Debi... View the full answer