On 3 January 20X4, Windsor Company purchased 30% of the shares of Brampton for $746,000 cash. Windsor will use the equitymethod. On this date, Brampton has $1,910.000 of assets, $1,528.000 of liabilities, and $382,000 of equity. Book values reflect fairvalues except for $860,000 of equipment, which has a five-year life and a fair value of $1,075,000. In 20X4, Brampton pays $31,200 oftotal dividends and reports earnings of $104,000.Requlred:1. Calculate goodwill on acquisition, and the annual extra depreciation on investee equipment at fair value.GoodwillAdditional depreciation2 Prepare 20X4 journal entries for Windsor Company. (If no entry Is requlred for a transactlon/event, select "No Journal entryrequlred" In the first account fleld.)View transaction listJournal entry worksheet123Record the investment made in Brampton Corp.Note: Enter debits before credits.TransactionGeneral JournalDebitCredit1Record entryClear entryView general journal3. At the end of 20X4, what is the balance in the investment account?Investment

On 3 January 20X4, Windsor Company purchased 30% of the shares of Brampton for $746,000 cash. Windsor will use the equity method. On this date, Brampton has $1,910,000 of assets, $1,528,000 of liabilities, and $382,000 of equity. Book values reflect fair values except for $860,000 of equipment, which has a five-year life and a fair value of $1,075,000. In 20X4, Brampton pays $31,200 of total dividends and reports earnings of $104,000.

On 3 January 20X4, Windsor Company purchased 30% of the shares of Brampton for $746,000 cash. Windsor will use the equity method. On this date, Brampton has $1,910,000 of assets, $1,528,000 of liabilities, and $382,000 of equity. Book values reflect fair values except for $860,000 of equipment, which has a five-year life and a fair value of $1,075,000. In 20X4, Brampton pays $31,200 of total dividends and reports earnings of $104,000.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 18E

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On 3 January 20X4, Windsor Company purchased 20% of the shares of Brampton for $572,000 cash. Windsor will use the equity method. On this date, Brampton has $1,870,000 of assets, $1,496,000 of liabilities, and $374,000 of equity. Book values reflect fair values except for $840,000 of equipment, which has a five-year life and a fair value of $1,050,000. In 20X4, Brampton pays $28,200 of total dividends and reports earnings of $94,000. Required: 1. Calculate goodwill on acquisition, and the annual extra depreciation on investee equipment at fair value. Goodwill Additional depreciation 2. Prepare 20X4 journal entries for Windsor Company. (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 $ 497,200 $ 42,000 2 Record the investment made in Brampton Corp. Transaction Note: Enter debits before credits. General Journal Debit Credit >
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