On January 1, 2016, Poplar Company Acquired 80% of the Common

question 31

Essay

On January 1, 2016, 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 2016 through 2019 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, 2019, Poplar Company sold 50% of the total stock of Sequoia for $400,000, reducing its investment percentage to 30%.Prepare Poplar's general journal entries for 2019.

---

Definitions:

Concern For People

A management attitude or approach that places a high value on employees' well-being and personal needs.

Business Development Manager

A professional responsible for creating growth opportunities and developing strategies for an organization.

Communication

The process of exchanging or transmitting thoughts, messages, or information through speech, writing, signals, or behaviors.

Sales Team

A group of individuals working together with the aim to sell products or services, targeting achieving sales goals.