On January 1, 2019, S acquires 70% of S for $490,000 cash. The remaining 30% of S’s shares continued to trade at a total value of $210,000. The new subsidiary reported c
On January 1, 2019, S acquires 70% of S for $490,000 cash. The remaining 30% of S’s shares continued to trade at a total value of $210,000. The new subsidiary reported common stock of $300,000 on that date, with
Year Net Income Dividends
2019 75,000 39,000
2020 96,000 44,000
2021 110,000 60,000
Assuming P has applied the equity method, make the needed consolidation entries as of December 31, 2021.
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