A CorpAnd B Corp

question 67

Essay

A Corp.and B Corp.formed a joint venture called C Corp.on January 1,2010.On that date,B Corp.invested assets with a fair value of $700,000 for its 65% stake in C Corp.A Corp.contributed machinery and equipment with a book value of $200,000 and a fair value of $800,000 as well as $400,000 in cash in return for its 35% stake in the venture.
On December 31,2010,C Corp.reported a net income of $300,000 and declared dividends in the amount of $50,000.The machinery and equipment are estimated to have an estimated useful life of 10 years.
-Prepare A Corp.'s equity method journal entries for 2010,assuming that the assets donated by B Corp did not include cash.

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Definitions:

Theory-before-research

Theory-before-research is an approach where a theoretical framework is developed prior to conducting empirical research, guiding the research questions and methodology.

Research-before-theory

An approach where empirical observation and data collection precede and guide the development of theory.

Racial Inequality

A disparity in opportunities, rights, and treatment experienced by individuals based solely on their race or ethnicity.

Theories

Systematically organized principles or explanations that have been accepted to explain certain phenomena or behaviors.