On January 1, 2020, Barber Corp. paid $1,160,000 to acquire Thompson Co. Thompson maintained separate incorporation. Barber used the equity method to account for the investment. The following information is available for Thompson’s assets, liabilities, and stockholders' equity accounts on January 1, 2020: Book Value Fair Value Current assets $ 130,000 $ 130,000 Land 75,000 193,000 Building (twenty year life) 250,000 276,000 Equipment (ten year life) 540,000 518,000 Current liabilities 26,000 26,000 Long-term liabilities 124,000 124,000 Common stock 233,000 Additional paid-in capital 389,000 Retained earnings 223,000 Thompson earned net income for 2020 of $134,000 and paid dividends of $51,000 during the year. At the end of 2023 the consolidation entry to eliminate barber's accrual of thompson's earnings would include a credit to investment in thompson company for
On January 1, 2020, Barber Corp. paid $1,160,000 to acquire Thompson Co. Thompson maintained separate incorporation. Barber used the equity method to account for the investment. The following information is available for Thompson’s assets, liabilities, and
Book
Value Fair
Value
Current assets $ 130,000 $ 130,000
Land 75,000 193,000
Building (twenty year life) 250,000 276,000
Equipment (ten year life) 540,000 518,000
Current liabilities 26,000 26,000
Long-term liabilities 124,000 124,000
Common stock 233,000
Additional paid-in capital 389,000
Thompson earned net income for 2020 of $134,000 and paid dividends of $51,000 during the year. At the end of 2023 the consolidation entry to eliminate barber's accrual of thompson's earnings would include a credit to investment in thompson company for
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