On January 1, 20X1, Paul, Inc

question 17

Short Answer

On January 1, 20X1, Paul, Inc. acquired a 90% interest in Stephan Company. The $45,000 excess of purchase price (parent's share only) was attributable to goodwill. On January 1, 20X3, Stephan Company had the following stockholders' equity: On January 2, 20X3, Stephan sold 2,000 additional shares in a private offering. Stephan issued the new shares for $80 per share; Paul, Inc. purchased all the shares. What is the journal entry that Paul will prepare to record this investment?

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Definitions:

Medial Geniculate

A part of the thalamus involved in the auditory processing and relay of sound information from the ear to the brain.

Cochlear Implants

Electronic devices that provide a sense of sound to a person who is profoundly deaf or severely hard of hearing.

Primary Auditory Cortex

The area in the temporal lobe of the brain that processes sounds and auditory data.

Hearing Loss

A partial or total inability to hear sounds in one or both ears.