ACC 401 ACC401 Week 1 Lab Assignment 1 Question 4

ACC 401 ACC401 Week 1 Lab Assignment 1 Question 4

soffix

  • $9.99


ACC 401 Week 1 Lab Assignment 1 Question 4

On January 1, 2015, Alamar Corporation acquired a 40 percent interest in Burks, Inc., for $210,000. On that date, Burks’s balance sheet disclosed net assets with both a fair and book value of $360,000. During 2015, Burks reported net income of $80,000 and declared and paid cash dividends of $25,000. Alamar sold inventory costing $30,000 to Burks during 2015 for $40,000. Burks used all of this merchandise in its operations during 2015. Prepare all of Alamar’s 2015 journal entries to apply the equity method to this investment. 


We Also Recommend


Sale

Unavailable

Sold Out