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
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 11PB: On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received...
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![Bison Co. acqulred 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 01/01/2019 of $420K and retained earnings of $252K. A buliding with a 10 years remaining useful life was undervalued by $28K on Hodge
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:
Income Dividends
Paid
$ 54.6K
61.6K
Earned
2019
$ 105.OK
2020
134.4K
2021
154.0K
84.0K
Bison owed S$30,8K to Hodge on 12/3V2021. Since the date of acquisition (01/01/2019), there have been no changes in Hodge's common stock
account.
Provide the consolidation entries needed as of 12/31/2021 assuhing that the equity method had been applied by Bison for this acquisition](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F950cfff5-7684-431b-92fd-5082c51417ce%2F1c12df9f-24f2-4c02-81af-2f68e2e96d28%2Fg55t6oq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Bison Co. acqulred 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 01/01/2019 of $420K and retained earnings of $252K. A buliding with a 10 years remaining useful life was undervalued by $28K on Hodge
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:
Income Dividends
Paid
$ 54.6K
61.6K
Earned
2019
$ 105.OK
2020
134.4K
2021
154.0K
84.0K
Bison owed S$30,8K to Hodge on 12/3V2021. Since the date of acquisition (01/01/2019), there have been no changes in Hodge's common stock
account.
Provide the consolidation entries needed as of 12/31/2021 assuhing that the equity method had been applied by Bison for this acquisition
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