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Question 4 (continued) Part 2: On January 1, 2021, Hamilton Financial (HF) acquired 30 percent of the outstanding shares of Wicker Park Inc. for $450,000. Information related to this investment is presented below: On January 1, 2021, the market value of Wicker Park Inc. was $1,500,000. The book value on that date was $1,200,000. The $300,000 difference related to an intangible asset (customer relationships) self-developed by Wicker Park Inc. This intangible asset has 10 years of useful life as of January 1, 2021. For the year ended December 31, 2021, Wicker Park Inc. recorded net income of $180,000 and declared (and paid) dividends of $110,000. On December 31, 2021, the market value of Wicker Park Inc. was $1,900,000. A. Provide the journal entries made by HF during 2021 to account for its investment in Wicker Park Inc.

Question 4 (continued) Part 2: On January 1, 2021, Hamilton Financial (HF) acquired 30 percent of the outstanding shares of Wicker Park Inc. for $450,000. Information related to this investment is presented below: On January 1, 2021, the market value of Wicker Park Inc. was $1,500,000. The book value on that date was $1,200,000. The $300,000 difference related to an intangible asset (customer relationships) self-developed by Wicker Park Inc. This intangible asset has 10 years of useful life as of January 1, 2021. For the year ended December 31, 2021, Wicker Park Inc. recorded net income of $180,000 and declared (and paid) dividends of $110,000. On December 31, 2021, the market value of Wicker Park Inc. was $1,900,000. A. Provide the journal entries made by HF during 2021 to account for its investment in Wicker Park Inc.

Intermediate Accounting: Reporting And Analysis
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
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Question 4 (continued) Part 2: On January 1, 2021, Hamilton Financial (HF) acquired 30 percent of the outstanding shares of Wicker Park Inc. for $450,000. Information related to this investment is presented below: On January 1, 2021, the market value of Wicker Park Inc. was $1,500,000. The book value on that date was $1,200,000. The $300,000 difference related to an intangible asset (customer relationships) self-developed by Wicker Park Inc. This intangible asset has 10 years of useful life as of January 1, 2021. For the year ended December 31, 2021, Wicker Park Inc. recorded net income of $180,000 and declared (and paid) dividends of $110,000. On December 31, 2021, the market value of Wicker Park Inc. was $1,900,000. A. Provide the journal entries made by HF during 2021 to account for its investment in Wicker Park Inc.
Transcribed Image Text:Question 4 (continued) Part 2: On January 1, 2021, Hamilton Financial (HF) acquired 30 percent of the outstanding shares of Wicker Park Inc. for $450,000. Information related to this investment is presented below: On January 1, 2021, the market value of Wicker Park Inc. was $1,500,000. The book value on that date was $1,200,000. The $300,000 difference related to an intangible asset (customer relationships) self-developed by Wicker Park Inc. This intangible asset has 10 years of useful life as of January 1, 2021. For the year ended December 31, 2021, Wicker Park Inc. recorded net income of $180,000 and declared (and paid) dividends of $110,000. On December 31, 2021, the market value of Wicker Park Inc. was $1,900,000. A. Provide the journal entries made by HF during 2021 to account for its investment in Wicker Park Inc.
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