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On January 1, 2013, Thunder Corp acquired 80% of Baldwin Corp

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Question;On January 1, 2013, Thunder Corp acquired 80% of Baldwin Corp. It was done by paying $720,000. It included a $30,000 control premium. Baldwin reported common stock of $440,000.Retained earnings of $312,000. Equipment was undervalued by $70,000 (7 year life).Copyright was undervalued by $60,000 (10 year life). Baldwin had income and dividends of: Net Income Dividends 2013 $ 110,000 $ 49,000 2014 $ 132,000 $ 70,000 2015 $ 160,000 $ 80,000 On 12/31/13 Thunder owed $42,000 to Baldwin. Prepare the consolidation entries using the equity method.

 

Paper#38613 | Written in 18-Jul-2015

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