On January 1, 2022, Padme Corporation acquired another 18,000 common shares of Skywalker Company for $12 each. The book values of Skywalker’s net assets were equal to fair values except for specialized equipment, which was understated by $16,000. The equipment had an estimated remaining life of 8 years. During 2022, Skywalker reported net income of $85,000 and paid dividends of $12,000. At December 31, 2022, the fair value of Skywalker’s shares was $16 per share . REQUIRED: b) Prepare the journal entries on the books of Padme Corporation for the investment in Skywalker for the 2022 fiscal year.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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On January 1, 2022, Padme Corporation acquired another 18,000 common shares of Skywalker Company for $12 each. The book values of Skywalker’s net assets were equal to fair values except for specialized equipment, which was understated by $16,000. The equipment had an estimated remaining life of 8 years. During 2022, Skywalker reported net income of $85,000 and paid dividends of $12,000. At December 31, 2022, the fair value of Skywalker’s shares was $16 per share

. REQUIRED: b) Prepare the journal entries on the books of Padme Corporation for the investment in Skywalker for the 2022 fiscal year. 

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