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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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