On 3 January 20X4, Windsor Company purchased 30% of the shares of Brampton for $746,000 cash. Windsor will use the equitymethod. On this date, Brampton has $1,910.000 of assets, $1,528.000 of liabilities, and $382,000 of equity. Book values reflect fairvalues except for $860,000 of equipment, which has a five-year life and a fair value of $1,075,000. In 20X4, Brampton pays $31,200 oftotal dividends and reports earnings of $104,000.Requlred:1. Calculate goodwill on acquisition, and the annual extra depreciation on investee equipment at fair value.GoodwillAdditional depreciation2 Prepare 20X4 journal entries for Windsor Company. (If no entry Is requlred for a transactlon/event, select "No Journal entryrequlred" In the first account fleld.)View transaction listJournal entry worksheet123Record the investment made in Brampton Corp.Note: Enter debits before credits.TransactionGeneral JournalDebitCredit1Record entryClear entryView general journal3. At the end of 20X4, what is the balance in the investment account?Investment

On 3 January 20X4, Windsor Company purchased 30% of the shares of Brampton for $746,000 cash. Windsor will use the equity method. On this date, Brampton has $1,910,000 of assets, $1,528,000 of liabilities, and $382,000 of equity. Book values reflect fair values except for $860,000 of equipment, which has a five-year life and a fair value of $1,075,000. In 20X4, Brampton pays $31,200 of total dividends and reports earnings of $104,000.

On 3 January 20X4, Windsor Company purchased 30% of the shares of Brampton for $746,000 cash. Windsor will use the equity method. On this date, Brampton has $1,910,000 of assets, $1,528,000 of liabilities, and $382,000 of equity. Book values reflect fair values except for $860,000 of equipment, which has a five-year life and a fair value of $1,075,000. In 20X4, Brampton pays $31,200 of total dividends and reports earnings of $104,000.

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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