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What journal entries will a co record in its books on jan

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Reference no: EM132968613

A Co owns 30% of B Co, enough to have significant influence. A accounts for its "Investment in B" using the equity method, and at Dec 31, year 10 has a value of $200,000. The FMV of 30% of B is $300,000.

  • On Jan 1, year 11, A Co purchases an additional 25% of B Co. for $250,000. Now A Co. owns 55%, and has control. On Jan 1, year 11 the fair market value of B Co is $1,000,000.

Required:

Problem 1: What journal entries will A Co record in its books on Jan 1, 2011?

Reference no: EM132968613

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