On January 3. 2019. Cullumber Company purchased for $s05.000 cash a 10% interest in Riverbed Corp. Accounted for as Available- for-Sale Investments). The fair value of Cullumber's investment in Riverbed securities is as follows: December 31, 2019. S565.000, and December 31. 2020. S522.000. On January 2. 2021. Cullumber purchased an additional 30% of Riverbed's stock for $1.560.000 cash when the book value of Riverbed's net assets was $4.186.000. The excess was attributable to depreciable assets having a remaining ife of 8 years. During 2019, 2020, and 2021. the following occurred. Riverbed Dividends Paid by Net Income Riverbed to Cullumber 2019 $353.000 $15000 2020 448.000 18.000 2021 549.000 70.000 On the books of Cullumber Company, prepare all journal entries in 2019, 2020, and 2021 that relate to its investment in Riverbed Corp, reflecting the data above and a change from the fair value method to the equity method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.)
On January 3. 2019. Cullumber Company purchased for $s05.000 cash a 10% interest in Riverbed Corp. Accounted for as Available- for-Sale Investments). The fair value of Cullumber's investment in Riverbed securities is as follows: December 31, 2019. S565.000, and December 31. 2020. S522.000. On January 2. 2021. Cullumber purchased an additional 30% of Riverbed's stock for $1.560.000 cash when the book value of Riverbed's net assets was $4.186.000. The excess was attributable to depreciable assets having a remaining ife of 8 years. During 2019, 2020, and 2021. the following occurred. Riverbed Dividends Paid by Net Income Riverbed to Cullumber 2019 $353.000 $15000 2020 448.000 18.000 2021 549.000 70.000 On the books of Cullumber Company, prepare all journal entries in 2019, 2020, and 2021 that relate to its investment in Riverbed Corp, reflecting the data above and a change from the fair value method to the equity method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.)
Chapter1: Financial Statements And Business Decisions
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Problem 1Q
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