Plain Corporation Acquired a 75% Interest in Swampy Company on January

question 16

Essay

Plain Corporation acquired a 75% interest in Swampy Company on January 1,2016,for $2,000,000.The book value and fair value of the assets and liabilities of Swampy Company on that date were as follows:
The property and equipment had a remaining life of 6 years on January 1,2016,and the deferred charge was being amortized over a period of 5 years from that date.Common stock was $1,500,000 and retained earnings was $900,000 on January 1,2016.Plain Company records its investment in Swampy Company using the cost method.
Required:
Prepare,in general journal form,the December 31,2016,workpaper entries necessary to:
A.Eliminate the investment account.
B.Allocate and amortize the difference between implied and book value.

Comprehend how to share and collaborate on Word documents efficiently.

Understand the use of templates and content controls in document creation.

Understand the key events and policies that spurred the growth of a more active national government.

Comprehend the various forms of federal assistance and their impact on state governance.

---

Definitions:

Resilience

The capacity to recover quickly from difficulties; toughness, or the ability to bounce back from adversity.

Problem-focused Coping

Problem-focused coping involves taking direct steps to confront and resolve the sources of stress or difficulty, rather than simply managing emotional responses.

Personal Control

An individual's belief in their ability to influence events and outcomes in their own life.

Stressors

External pressures or events that cause stress, which can be physical, psychological, or emotional in nature, impacting individual well-being and health.