Solution-Give the equity method entries that polo should

Give the equity method entries that polo should record

Reference no: EM133131306

Question - Polo Corporation purchased 100% ownership of Solo Products on January 1, 20X1, for $520,000, at which time Solo Products reported retained earnings of $100,000 and capital stock outstanding of $300,000. The differential was attributable to patents with a life of 6 years. Income and dividends of Solo Products were:

Year	Net Income	Dividends
20X1	$80,000	$10,000
20X2	$91,000	$12,000
20X3	$75,000	$9,000
20X4	$83,000	$11,000
20X5	$80,000	$10,000

Required -

a) Give the equity method entries that Polo should record to account for its investment in solo for 20X1, 20X2, 20X3, 20X4 and 20X5.

b) What is the balance of the Investment in Solo account on Polo's balance sheet at December 31, 20X5, after all required equity method entries have been recorded?

Reference no: EM133131306

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Give the equity method entries that polo should record

Reference no: EM133131306

Reference no: EM133131306

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