On January 1, 2013, Spark Corp

question 81

Essay

On January 1, 2013, 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 2013, Cranston reported net income of $100,000 and paid cash dividends of $30,000. Spark sold inventory costing $40,000 to Cranston during 2013 for $50,000. Cranston used all of this merchandise in its operations during 2013. 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 2013 to apply the equity method to this investment.

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Definitions:

Identity

The qualities, beliefs, personality, looks, and/or expressions that make a person (self-identity) or group (particular social category or cultural identity) different from others.

Generalized Amnesia

A condition marked by a complete loss of memory, affecting the individual's identity and autobiographical information without impairment of other cognitive functions.

Localized Amnesia

A memory loss confined to specific times, places, or events, often due to trauma or stress.

Continuous Amnesia

A rare condition involving the ongoing inability to recall past events or form new memories.