On january 3 2008 jenkins corp acquired 40 of the

Reference no: EM13601351

On January 3, 2008, Jenkins Corp. acquired 40% of the outstanding common stock of Bolivar Co. for $1,200,000. This acquisition gave Jenkins the ability to exercise significant influence over the investee. The book value of the acquired shares was $950,000. Any excess cost over the underlying book value was assigned to a patent that was undervalued on Bolivar's balance sheet. This patent has a remaining useful life of ten years. For the year ended December 31, 2008, Bolivar reported net income of $312,000 and paid cash dividends of $96,000.

Required: Prepare a schedule to show the balance Jenkins should report as its Investment in Bolivar Co. at December 31, 2008.

Reference no: EM13601351

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