On January 1, 20X1, Poplar Company Acquired 80% of the Common

question 32

Essay

On January 1, 20X1, Poplar Company acquired 80% of the common stock of Sequoia Company for $400,000. On this date, Sequoia had total owners' equity of $400,000. The excess of cost over book value was due to a patent with remaining life of 10 years. Poplar adopted the simple equity method to account for its investment in Sequoia.Sequoia's income for the three years 20X1 through 20X3 is $80,000, $60,000, and $100,000 respectively. All income is earned evenly throughout the year; Sub has paid no dividends.
On July 1, 20X3, Poplar Company sold 10% of the total stock of Sequoia for $70,000, reducing its investment percentage to 70%. Prepare Poplar's general journal entries for 20X3.

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Definitions:

Agreeableness

A personality trait characterized by qualities of being kind, sympathetic, cooperative, warm, and considerate towards others.

Self-Enhancement

The tendency to describe or present oneself using positive or flattering attributes often for personal gain or increased self-esteem.

Cultural Heritage

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Sociohistorical Context

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