Solution-Prepare all of Ruarks journal entries

Prepare all of Ruarks journal entries

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Reference no: EM132846437

Question - Ruark Corporation acquired a 37 percent interest in Batson, Inc., for $275,500. On that date, Batson's balance sheet disclosed net assets of $550,000. Any excess of acquisition price is attributable to trademark that has a life of 15 years. During 2021, Batson reported net income of $16,000 and paid cash dividends of $62,000. Ruark sold inventory costing $80,000 to Batson during 2021 for $130,000. Batson used $91,000 of this merchandise in its operations during 2021.

Prepare all of Ruark's 2021 journal entries to apply the equity method to this investment.

Reference no: EM132846437

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Prepare all of Ruarks journal entries

Reference no: EM132846437

Reference no: EM132846437

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