On January 3, 2018, Jenkins Corp

question 37

Essay

On January 3, 2018, Jenkins Corp.acquired 40% of the outstanding common stock of Bolivar Co.for $1,200,000.This acquisition gave Jenkins the ability to exercise significant influence over the investee.The book value of the acquired shares was $950,000.Any excess cost over the underlying book value was assigned to a patent that was undervalued on Bolivar's balance sheet.This patent has a remaining useful life of ten years.For the year ended December 31, 2018, Bolivar reported net income of $312,000 and paid cash dividends of $96,000.
Required:
Prepare a schedule to show the balance Jenkins should report as its Investment in Bolivar Co.at December 31, 2018.

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