Bison Co. acquired 70 percent of Hodge Co. by paying $650K on 01/01/2019, Of this amout, $20K was a control premlum. Hodge reported comm stock on 0Vov2019 of $420K and retained earnings of $252K. A bullding with a 10 years remaining useful life was undervalued by $28K on Hodg books. Additionally, copyrights (intangible assets) of $80K were to be recognized and amortized over 20 years Hodge earned Income and paid cash dividends as follows: Incone Dividends Earned Paid ess 2019 $105.0x $ 54.6K 2020 134.4K 61.6K 2021 154.0K 84.0K Bison owed $30.8K to Hodge on 12/3V2021 Since the date of acquisition (01Ov2019, there have been no changes in Hodge's common stock account. Provide the consoldation entries needed as of 12/31/2021 assuhing that the equity method had been applied by Bison for this acquisition

Bison Co. acquired 70 percent of Hodge Co. by paying $650K on 01/01/2019, Of this amout, $20K was a control premlum. Hodge reported comm stock on 0Vov2019 of $420K and retained earnings of $252K. A bullding with a 10 years remaining useful life was undervalued by $28K on Hodg books. Additionally, copyrights (intangible assets) of $80K were to be recognized and amortized over 20 years Hodge earned Income and paid cash dividends as follows: Incone Dividends Earned Paid ess 2019 $105.0x $ 54.6K 2020 134.4K 61.6K 2021 154.0K 84.0K Bison owed $30.8K to Hodge on 12/3V2021 Since the date of acquisition (01Ov2019, there have been no changes in Hodge's common stock account. Provide the consoldation entries needed as of 12/31/2021 assuhing that the equity method had been applied by Bison for this acquisition

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 8MC: On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was...

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On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received $12,000,000 in net assets. In 2016, the market value of the goodwill obtained from Branta Corp. was valued at $4,000,000, but in 2017 it dropped to $2,000,000. Prepare the journal entry for the creation of goodwill and the entry to record any impairments to it in subsequent years.
On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000
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