Question rod corporation purchased 100 ownership of

Assignment Help Financial Accounting

Reference no: EM13349708

Question :

Rod Corporation purchased 100% ownership of Stafford Corporation on January 1, 20X4, for $65,000, which was $10,000 above the original book value. Half the additional amount was attributable to an increase in the value of land held by Stafford, and half was due to a boost in the value of equipment. The equipment had a residual economic life of five years on January 1, 20X4. During 20X4, Stafford reported net income of $12,000 and paid dividends of $4,500.

Required:

Purpose the journal entries that Rod Corporation recorded during 20X4 related to its investment in Stafford Corporation, considering Rod uses the equity method in accounting for its investment.

Need journal entries for the subsequent:

Record purchase of Stafford Stock.

Record dividend from Stafford.

Record equity-method income.

Record amortization differential assigned to equipment.

Reference no: EM13349708

Questions Cloud

Question 1 for the past five years the rs company has : question 1 for the past five years the rs company has produced and sold electronic magnets to chemistry labs throughout

Question 1a define substance abuseb describe and give one : question 1a define substance abuseb describe and give one example of each of the followingi stimulantsii depressantsiii

Question1a 35 kg uniform ladder is leaned against a : question1a 35 kg uniform ladder is leaned against a building. the 5 meter tall ladder makes an angle of 60 degrees with

Question 1according to mcelroy and albuquerque 2002 : question 1according to mcelroy and albuquerque 2002 sustainability in an island setting seeks to conserve a widely

Question rod corporation purchased 100 ownership of : question rod corporation purchased 100 ownership of stafford corporation on january 1 20x4 for 65000 which was 10000

Question1a offer an instance of one alternative renewable : question1a offer an instance of one alternative renewable energy source.b write down an energy transformation equation

Question 1tourism projected onto its anticipated growth : question 1tourism projected onto its anticipated growth requires an urgent integration of preventive approaches in all

Questionthink the sun to be at the origin of a : questionthink the sun to be at the origin of a xy-coordinate system. a telescope spots an asteroid in the xy-plane at a

Questionnbsp 1 soundview centre uses a periodic inventory : questionnbsp 1 soundview centre uses a periodic inventory system. at the end of 2010 the accounting records include the

User Account

All Pages