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Working Paper Using the Equity Method of Accounting

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Started the problem but I am having trouble with it and I do not know if the work I did is correct or not. I need to review this problem for my final.

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Modern Advanced Accounting
Publisher: McGraw-Hill/Irwin; 10 edition
ISBN-10: 0073211591

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This solution contains the Balance of Intercompany Investment Income Ledger account and balance of Investment in Scate Company Common Stock ledger account on June 30, 2006.

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Started the problem but I'm having trouble with it and I don't know if the work I did is correct or not.

On July 1, 2005, Parson Corporation acquired all of the outstanding common stock of Scate Company for $900,000. On that date, the carrying amount of Scate's identifiable net assets was $800,000. The difference of $100,000 was allocated as follows:

Inventories (first-in, first- out cost) $ 20,000
Plant assets (net) (economic life 8 years) ...

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