Prepare all of the 2013 journal entries for waters

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Reference no: EM136145

Waters, Inc., acquired 10 % of Denton Corporation on 1^st January, 2012, for $297,400 though Denton's book value on that date was $2,380,000. Denton held land that was undervalued by $144,000 on its accounting records. In 2012, Denton earned a total income of $326,000 while paying cash dividends of $122,000. On 1^st January, 2013, Waters purchased an additional 30% of Denton for $840,510. Denton's land is still undervalued on that date, but then by $172,700. Any extra excess cost was attributable to a trademark with a 10-year life for the 1^st purchase and a 9-year life for the second. The initial 10% investment had been maintained at cost because fair values were not readily available. The equity process will now be applied. In 2013, Denton reported income of $407,500 and distributed dividends of $153,000.

Prepare all of the 2013 journal entries for Waters

Reference no: EM136145

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