On January 1, Hockey Unlimited Inc. purchased 2, 500 of the 10, 000 outstanding common shares of Goal Corporation for $14,000 cash, obtaining significant influence of the company. Hockey Unlimited intends to hold the securities indefinitely. On January 1, the balance sheet of Goal Corporation reflected depreciable assets with a net book value of $30,000 and a 10-year remaining useful life. The fair value of the depreciable assets is $33,000 on January 1. Record the adjusting entry for depreciation expense on December 31 using the straight-line depreciation method.

On January 1, Hockey Unlimited Inc. purchased 2, 500 of the 10, 000 outstanding common shares of Goal Corporation for $14,000 cash, obtaining significant influence of the company. Hockey Unlimited intends to hold the securities indefinitely. On January 1, the balance sheet of Goal Corporation reflected depreciable assets with a net book value of $30,000 and a 10-year remaining useful life. The fair value of the depreciable assets is $33,000 on January 1. Record the adjusting entry for depreciation expense on December 31 using the straight-line depreciation method.

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

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 8MC

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