Problem 1 On January 1, 2011, the Travis Corporation purchased a 22% in Scott Company by procuring 5000 shares of the 25,000 outstanding shares of common stock. The acquisition price was $32.50 a share. On the date of this procurement, Scott Company?s net assets were defined as the following: "The total liabilities has a book and fair value of $90,000 During 2011, Scott Company had earned income of $76,000 and paid dividends of $16,000. The depreciated items have a useful life of 5 years remaining and no residual value " Requirements: 1 Prepare all the necessary journal entries on Travis?s books to record the acquisition and the events subsequent to the initial investments.,Thanks so much,here is the excel file is that helps!
Paper#7705 | Written in 18-Jul-2015Price : $25