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  • On January 1 2014 Pert Company Purchased 85 of The

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    Muhammad Shahid
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    Pert Company purchased 85% of the outstanding common stock of Sales Company for $350,000 on January 1, 2014. Sales Company's stockholders' equity at that date consisted of $100,000 in common stock, $40,000 in other contributed capital, and $140,000 in retained earnings. During 2014, Sales Company earned $148,000 and declared and paid a $50,000 dividend.

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    Pert Company purchased 85% of the outstanding common stock of Sales Company for $350,000 on January 1, 2014. Sales Company's stockholders' equity at that date consisted of $100,000 in common stock, $40,000 in other contributed capital, and $140,000 in retained earnings. During 2014, Sales Company earned $148,000 and declared and paid a $50,000 dividend.

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    47 views1 page

    On January 1 2014 Pert Company Purchased 85 of The

    Uploaded by

    Muhammad Shahid
    Pert Company purchased 85% of the outstanding common stock of Sales Company for $350,000 on January 1, 2014. Sales Company's stockholders' equity at that date consisted of $100,000 in common stock, $40,000 in other contributed capital, and $140,000 in retained earnings. During 2014, Sales Company earned $148,000 and declared and paid a $50,000 dividend.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    On January 1 2014 Pert Company purchased 85 of the

    #6338
    On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales
    Company for $350,000. On that date, Sales Company's stockholders' equity consisted of
    common stock, $100,000; other contributed capital, $40,000; and retained earnings, $140,000.
    Pert Company paid more than the book value of net assets acquired because the recorded cost
    of Sales Company's land was significantly less than its fair value. During 2014 Sales Company
    earned $148,000 and declared and paid a $50,000 dividend. Pert Company used the partial
    equity method to record its investment in Sales Company.Required:A. Prepare the investment-
    related entries on Pert Company's books for 2014?B. Prepare the work-paper eliminating
    entries for a work-paper on December 31, 2014?View Solution:
    On January 1 2014 Pert Company purchased 85 of the

    ANSWER
    http://paperinstant.com/downloads/on-january-1-2014-pert-company-purchased-85-of-the/

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