On January 1, 2018, Spark Corp

question 35

Essay

On January 1, 2018, Spark Corp.acquired a 40% interest in Cranston Inc.for $250,000.On that date, Cranston's balance sheet disclosed net assets of $430,000.During 2018, Cranston reported net income of $100,000 and paid cash dividends of $30,000.Spark sold inventory costing $40,000 to Cranston during 2018 for $50,000.Cranston used all of this merchandise in its operations during 2018.Any excess cost over fair value is attributable to an unamortized trademark with a 20-year remaining life.
Required:
Prepare all of Spark's journal entries for 2018 to apply the equity method to this investment.

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An individual's subjective evaluation of their own worth or abilities.

Self-Efficacy

An individual's belief in their own ability to succeed in specific situations or accomplish tasks.

Gender

The range of characteristics pertaining to, and differentiating between, masculinity and femininity, often based on social, cultural, and psychological aspects.