Can you help me with this assignment?
Waters, Inc., acquires 10 percent of Denton Corporation on January 1, 2004, for $210,000 although the book value of Denton on that date was $1,700,000. Denton held land that was undervalued on its accounting records by $100,000. During 2004, Denton earned a net income of $240,000 while paying cash dividends of $90,000. On January 1, 2005, Waters purchased an additional 30 percent of Denton for $600,000.
Denton's land is still undervalued on that date but now by $120,000. Any additional excess cost was attributable to a trademark with a 10-year life for the first purchase and a 9-year life for the second. The initial 10 percent investment had been maintained at cost because fair values were not readily available. The equity method will now be applied. During 2005, Denton reported income of $300,000 and distributed dividends of $110,000.
Prepare all of the 2005 journal entries for Waters, Inc.
>> I have attached the Excel file which has all my details <<© BrainMass Inc. brainmass.com September 21, 2018, 1:53 am ad1c9bdddf - https://brainmass.com/business/journal-entries/prepare-all-of-the-2005-journal-entries-for-waters-inc-108851
A helpful Excel spreadsheet is provided as your solution here.