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Kellogg?s Corporation purchased shares of Swingline Corporation

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Question;Kellogg?s Corporation purchased shares of Swingline Corporation in the following sequence:Date No. of Shares Purchased Amount PaidJanuary 1, 2013 2,000 shares $35,000January 1, 2014 500 shares 25,000January 1, 2015 3,000 shares 90,000The book value of Swingline?s net assets at January 1, 2013 was $220,000. Each year since Kellogg?s first purchased shares, Swingline has reported net income of $90,000 and paid dividends of $40,000. The amount paid in excess of the book value of Swingline?s net assets was attributed to the increase in the value of identifiable intangible assets with a remaining life of five years at the date the shares of Swingline were purchased. Swingline has had 15,000 shares of voting common stock outstanding throughout the four-year period.Required:Give the journal entries recorded on Kellogg Corporation?s books in 2015 related to its investment in Swingline Corporation.

 

Paper#48481 | Written in 18-Jul-2015

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