On January 1, 2018, Vacker Co

question 15

Essay

On January 1, 2018, Vacker Co. acquired 70% of Carper Inc. by paying $650,000. This included a $20,000 control premium. Carper reported common stock on that date of $420,000 with retained earnings of $252,000. A building was undervalued in the company's financial records by $28,000. This building had a ten-year remaining life. Copyrights of $80,000 were to be recognized and amortized over 20 years.Carper earned income and paid cash dividends as follows:
On December 31, 2020, Vacker owed $30,800 to Carper. There have been no changes in Carper's common stock account since the acquisition.Required:If the equity method had been applied by Vacker for this acquisition, what were the consolidation entries needed as of December 31, 2020?

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Definitions:

Negative News

Information that delivers undesired or disappointing messages, often causing concern or distress to the receiver.

Emotional Investment

A commitment of one's feelings and emotional energy to a project, person, or idea.

Direct Approach

A straightforward method of communication where the main point is presented at the beginning of the message.

Negative News

Information or reports that convey unfavorable, adverse, or undesirable outcomes or situations.