i need the answer quickly Pirate Corporation purchased 100 percent ownership of Ship Company on January 1, 20X5, for $289,000. On that date, the book valueof Ship's reported net assets was $218,000. The excess over book value paid is attributable to depreciable assets with a remaininguseful life of 5 years. Net income and dividend payments of Ship in the following periods were as shown below:DividendsYear20X5Net Income$ 26,000ed20X620X746,000$ 11,00021,00026,00052,000RokencesRequired:Prepare journal entries on Pirate Corporation's books relating to its investment in Ship Company for each of the three years, assumingit accounts for the investment using the equity method.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.IcrawView transaction listJournal entry worksheet<12345 6 7 8 9 10>Record the purchase of Ship Company for 20X5.Note: Enter debits before credits.EventGeneral JournalDebitCredit< Prev1 of 1Next >

Equity method is an accounting method wherein the investment is initially recognized at cost and…

Pirate Corporation purchased 100 percent ownership of Ship Company on January 1, 20X5, for $289,000. On that date, the book value of Ship's reported net assets was $218,000. The excess over book value paid is attributable to depreciable assets with a remaining useful life of 5 years. Net income and dividend payments of Ship in the following periods were as shown below: Year 20X5 Net Income $ 26,000 Dividends. 20X6 20X7 46,000 26,000 $ 11,000 21,000 52,000 4 Required: Prepare journal entries on Pirate Corporation's books relating to its investment in Ship Company for each of the three years, assuming It accounts for the Investment using the equity method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 9 10 > Record the purchase of Ship Company for 20X5. Note: Enter debits before credits. Event General Journal Debit Credit

Pirate Corporation purchased 100 percent ownership of Ship Company on January 1, 20X5, for $289,000. On that date, the book value of Ship's reported net assets was $218,000. The excess over book value paid is attributable to depreciable assets with a remaining useful life of 5 years. Net income and dividend payments of Ship in the following periods were as shown below: Year 20X5 Net Income $ 26,000 Dividends. 20X6 20X7 46,000 26,000 $ 11,000 21,000 52,000 4 Required: Prepare journal entries on Pirate Corporation's books relating to its investment in Ship Company for each of the three years, assuming It accounts for the Investment using the equity method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 9 10 > Record the purchase of Ship Company for 20X5. Note: Enter debits before credits. Event General Journal Debit Credit

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 11MCQ

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Pirate Corporation purchased 100 percent ownership of Ship Company on January 1, 20X5, for $279,000. On that date, the book value of Ship's reported net assets was $206,000. The excess over book value paid is attributable to depreciable assets with a remaining useful life of 5 years. Net income and dividend payments of Ship in the following periods were as shown below: Year 20x5 20x6 28X7 Net Income $30,000 50,000 30,000 Required: Prepare journal entries on Pirate Corporation's books relating to its investment in Ship Company for each of the three years, assuming it accounts for the investment using the equity method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Dividends $5,000 15,000 47,000 Journal entry worksheet
During the current year, Brewer Company acquired all of the outstanding common stock of Miller Incorporated paying $11,600,000 cash. The book values and fair values of Miller's assets and liabilities acquired are listed below: 1,425,000Inventories2,300,0003,600,000 Property, plant, and Book ValueFair ValueAccounts receivable$ 1,600,000$ equipment8,600,00011,225,000Accounts payable 2,600,0002,600,000Bonds payable4,100,0003,725,000 Required: Prepare the journal entry to record the acquisition by Brewer Company. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
During the current year, Brewer Company acquired all of the outstanding common stock of Miller Inc. paying $11,900,000 cash. The book values and fair values of Miller's assets and liabilities acquired are listed below: Book Value Fair Value Accounts receivable $ 1,750,000 $ 1,575,000 Inventories 2,600,000 3,900,000 Property, plant, and equipment 8,900,000 11,525,000 Accounts payable 2,900,000 2,900,000 Bonds payable 4,400,000 4,025,000 Prepare the journal entry to record the acquisition by Brewer Company.
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As of December 31, 20X4, Blue Co.’s statement of financial position shows the book values of $15,000,000 for total assets and $12,000,000 for total liabilities. Also on December 31, 20X4, an appraisal shows the fair values of $18,500,000 for total assets and $14,000,000 for total liabilities. Green Co. purchased all of the net assets of Blue Co. on December 31, 20X4 for $5,500,000. What amount of goodwill, if any, did Green Co. record on the acquisition date? a. $2,500,000 b. $1,000,000 c. $4,500,000 d. $0
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