Find what were consolidation entries needed as of december

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On January 1, 2018, Vacker Co. acquired 70% of Carper Inc. by paying $650,000. This included a $20,000 control premium. Carper reported common stock on that date of $420,000 with retained earnings of $252,000. A building was undervalued in the company's financial records by $28,000. This building had a ten-year remaining life. Copyrights of $80,000 were to be recognized and amortized over 20 years. Carper earned income and paid cash dividends as follows:

                       Net Income               Dividends Paid

2018               $105,000                    $54,600

2019                      134,400                61,600

2020                        154,000                 84,000

On December 31, 2020, Vacker owed $30,800 to Carper. There have been no changes in Carper's common stock account since the acquisition.

Required:

Problem 1: If the equity method had been applied by Vacker for this acquisition, what were the consolidation entries needed as of December 31, 2020?

Reference no: EM132617936

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