On January 1, 2011, Spark Corp

question 57

Essay

On January 1, 2011, 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 2011, Cranston reported net income of $100,000 and paid cash dividends of $30,000. Spark sold inventory costing $40,000 to Cranston during 2011 for $50,000. Cranston used all of this merchandise in its operations during 2011. 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 2011 to apply the equity method to this investment.

Recognize the importance of environmental audits in real estate transactions.

Understand the remedies available to parties in case of breach of real estate agreements.

Identify the documents and searches involved in closing a real estate transaction.

Understand the legal consequences of undisclosed facts and misrepresentations in real estate transactions.

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Definitions:

Reflective Self-awareness

The conscious examination and understanding of one's thoughts, feelings, and behaviors.

Growth

The process of increasing in size, quantity, value, or strength.

Morbid Obesity

A condition characterized by an excessive amount of body fat, which may have adverse effects on health, including increased risk of diseases.

Weight Loss Program

A structured plan designed to help individuals achieve and maintain a healthier weight through diet, exercise, and sometimes medical intervention.