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On January 1, 2023, Bactin Corporation acquired 15% of Oakton Company for $116,000. On that date, the total book value and fair value of Oakton's identifiable net assets was $916,000. Any difference between cost and fair value is attributable to goodwill. In 2023, Oakton reported net income of $76,000 and paid dividends of $46,000. On January 1, 2024, Bactin Corporation bought another 15% of Oakton for $116,000, and on that date, the book value and fair value of Oakton's net assets still was $916,000 (the fair value of Oakton did not change during 2023). Bactin concluded that its 30% ownership now allowed it to significantly influence Oakton's operations. In 2024, Oakton reported net income of $96,000 and paid dividends of $56,000. Required: Prepare all journal entries for Bactin for 2023 and 2024, assuming no change in fair value of the Oakton stock during that time period. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list

On January 1, 2023, Bactin Corporation acquired 15% of Oakton Company for $116,000. On that date, the total book value and fair value of Oakton's identifiable net assets was $916,000. Any difference between cost and fair value is attributable to goodwill. In 2023, Oakton reported net income of $76,000 and paid dividends of $46,000. On January 1, 2024, Bactin Corporation bought another 15% of Oakton for $116,000, and on that date, the book value and fair value of Oakton's net assets still was $916,000 (the fair value of Oakton did not change during 2023). Bactin concluded that its 30% ownership now allowed it to significantly influence Oakton's operations. In 2024, Oakton reported net income of $96,000 and paid dividends of $56,000. Required: Prepare all journal entries for Bactin for 2023 and 2024, assuming no change in fair value of the Oakton stock during that time period. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On January 1, 2023, Bactin Corporation acquired 15% of Oakton Company for $116,000. On that date, the total book value and fair value of Oakton's identifiable net assets was $916,000. Any difference between cost and fair value is attributable to goodwill. In 2023, Oakton reported net income of $76,000 and paid dividends of $46,000. On January 1, 2024, Bactin Corporation bought another 15% of Oakton for $116,000, and on that date, the book value and fair value of Oakton's net assets still was $916,000 (the fair value of Oakton did not change during 2023). Bactin concluded that its 30% ownership now allowed it to significantly influence Oakton's operations. In 2024, Oakton reported net income of $96,000 and paid dividends of $56,000. Required: Prepare all journal entries for Bactin for 2023 and 2024, assuming no change in fair value of the Oakton stock during that time period. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 5 Co 6
Transcribed Image Text:On January 1, 2023, Bactin Corporation acquired 15% of Oakton Company for $116,000. On that date, the total book value and fair value of Oakton's identifiable net assets was $916,000. Any difference between cost and fair value is attributable to goodwill. In 2023, Oakton reported net income of $76,000 and paid dividends of $46,000. On January 1, 2024, Bactin Corporation bought another 15% of Oakton for $116,000, and on that date, the book value and fair value of Oakton's net assets still was $916,000 (the fair value of Oakton did not change during 2023). Bactin concluded that its 30% ownership now allowed it to significantly influence Oakton's operations. In 2024, Oakton reported net income of $96,000 and paid dividends of $56,000. Required: Prepare all journal entries for Bactin for 2023 and 2024, assuming no change in fair value of the Oakton stock during that time period. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 5 Co 6
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