On August 31, 2019, Brown Corporation purchased 90% shares of Owen Company's common stock for $6,500,000 cash. On January 1, 2019, Owen Company had common stock of $4,500,000 and retained earnings of $1,800,000. The balance sheet informatio. available for Owen Company on August 31, 2019, showed the following: Book Value Fair Value Inventory (FIFO) $1,300,000 $1,500,000 Equipment (net) 1,900,000 1,500,000 Land 3,000,000 3,000,000
On August 31, 2019, Brown Corporation purchased 90% shares of Owen Company's common stock for $6,500,000 cash. On January 1, 2019, Owen Company had common stock of $4,500,000 and retained earnings of $1,800,000. The balance sheet informatio. available for Owen Company on August 31, 2019, showed the following: Book Value Fair Value Inventory (FIFO) $1,300,000 $1,500,000 Equipment (net) 1,900,000 1,500,000 Land 3,000,000 3,000,000
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
Related questions
Question
100%
![On August 31, 2019, Brown Corporation purchased 90% shares of Owen Company's
common stock for $6,500,000 cash. On January 1, 2019, Owen Company had common
stock of $4,500,000 and retained earnings of $1,800,000. The balance sheet information
available for Owen Company on August 31, 2019, showed the following:
Book Value
Fair Value
Inventory (FIFO)
$1,300,000
$1,500,000
Equipment (net)
1,900,000
1,500,000
Land
3,000,000
3,000,000
The equipment had a remaining useful life of ten years. Owen Company reported
$240,000 of net income in 2019 and declared $60,000 on December 1 of the year.
Required:
Prepare the workpaper entries on December 31, 2019 assuming the full equity method is
used.
:39](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F63c3c547-e86e-467a-929f-4b17b647749a%2F884fb62c-59f0-4ea6-8bd1-661307b7663f%2Ftrm076c_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On August 31, 2019, Brown Corporation purchased 90% shares of Owen Company's
common stock for $6,500,000 cash. On January 1, 2019, Owen Company had common
stock of $4,500,000 and retained earnings of $1,800,000. The balance sheet information
available for Owen Company on August 31, 2019, showed the following:
Book Value
Fair Value
Inventory (FIFO)
$1,300,000
$1,500,000
Equipment (net)
1,900,000
1,500,000
Land
3,000,000
3,000,000
The equipment had a remaining useful life of ten years. Owen Company reported
$240,000 of net income in 2019 and declared $60,000 on December 1 of the year.
Required:
Prepare the workpaper entries on December 31, 2019 assuming the full equity method is
used.
:39
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Practical Management Science](https://www.bartleby.com/isbn_cover_images/9781337406659/9781337406659_smallCoverImage.gif)
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
![Operations Management](https://www.bartleby.com/isbn_cover_images/9781259667473/9781259667473_smallCoverImage.gif)
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
![Operations and Supply Chain Management (Mcgraw-hi…](https://www.bartleby.com/isbn_cover_images/9781259666100/9781259666100_smallCoverImage.gif)
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
![Practical Management Science](https://www.bartleby.com/isbn_cover_images/9781337406659/9781337406659_smallCoverImage.gif)
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
![Operations Management](https://www.bartleby.com/isbn_cover_images/9781259667473/9781259667473_smallCoverImage.gif)
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
![Operations and Supply Chain Management (Mcgraw-hi…](https://www.bartleby.com/isbn_cover_images/9781259666100/9781259666100_smallCoverImage.gif)
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
![Business in Action](https://www.bartleby.com/isbn_cover_images/9780135198100/9780135198100_smallCoverImage.gif)
![Purchasing and Supply Chain Management](https://www.bartleby.com/isbn_cover_images/9781285869681/9781285869681_smallCoverImage.gif)
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
![Production and Operations Analysis, Seventh Editi…](https://www.bartleby.com/isbn_cover_images/9781478623069/9781478623069_smallCoverImage.gif)
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.