Interest in minaj, In January 2012, Wallace, Inc. acquired

Interest in minaj

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Reference no: EM13919311

In January 2012, Wallace, Inc. acquired a 25% interest in Minaj, Inc. for $1,750,000, giving Wallace significant influence over Minaj. Any excess of purchase price over book value was considered goodwill. In 2012, Minaj reported net income of $525,000 and paid total dividends amounting to $175,000.

Required: Prepare Wallace’s 2012 journal entries related to its investment in Minaj.

Reference no: EM13919311

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Interest in minaj : In January 2012, Wallace, Inc. acquired a 25% interest in Minaj, Inc. for $1,750,000, giving Wallace significant influence over Minaj. Any excess of purchase price over book value was considered goodwill

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