Matthews Co

question 27

Essay

Matthews Co.acquired all of the common stock of Jackson Co.on January 1, 2017.As of that date, Jackson had the following trial balance:
During 2017, Jackson reported net income of $96,000 while paying dividends of $12,000.During 2018, Jackson reported net income of $132,000 while paying dividends of $36,000.
Assume that Matthews Co.acquired the common stock of Jackson Co.for $588,000 in cash.As of January 1, 2017, Jackson's land had a fair value of $102,000, its buildings were valued at $188,000, and its equipment was appraised at $216,000.Any excess of consideration transferred over fair value of assets and liabilities acquired is due to an unamortized patent to be amortized over 10 years.
Matthews decided to use the equity method for this investment.
Required:
(A.) Prepare consolidation worksheet entries for December 31, 2017.
(B.) Prepare consolidation worksheet entries for December 31, 2018.

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Definitions:

Risk For Infection

A clinical assessment identifying individuals or groups at increased likelihood of developing an infection due to specific health or situational factors.

Malodorous Drainage

Unpleasant or foul-smelling discharge, commonly associated with infections, wounds, or other medical conditions requiring attention.

Pressure Injury

Tissue damage caused by prolonged pressure on the skin, often occurring on skin over bony areas, it's a serious complication that can affect people who are immobilized or have limited mobility.

Débridement

A medical procedure involving the removal of dead, damaged, or infected tissue to promote healing.