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X purchased 30% of Y of Y on January 1,2002 for $300,000.On the date,Y's net assets of Y had a book value of $500,000.Any Acquisition Differential on the acquisition date is to be allocated to Y's Equipment,which had a remaining useful life of 5 years from the date of acquisition.Y paid dividends of $20,000 in each year.
Y's income statements for 2002 and 2003 showed the following:
-On January 1,2004,Black Corporation purchased 15 per cent of the outstanding shares of White Corporation for $498,000.From Black's perspective,White was a FVTPL investment.The fair value of Black's investment was $520,000 at December 31,2004.
On January 1,2005,Black purchased an additional 30 per cent of White's shares for $750,000.The second share purchase allows Black to exert significant influence over White There was an acquisition differential of 30 per cent on the date of acquisition.
During the two years White reported the following results:
Required:
With respect to this investment,prepare Black's journal entries for both 2004 and 2005.

Question

The following information pertains to questions 
X purchased 30% of Y of Y on January 1,2002 for $300,000.On the date,Y's net assets of Y had a book value of $500,000.Any Acquisition Differential on the acquisition date is to be allocated to Y's Equipment,which had a remaining useful life of 5 years from the date of acquisition.Y paid dividends of $20,000 in each year.
Y's income statements for 2002 and 2003 showed the following:
-On January 1,2004,Black Corporation purchased 15 per cent of the outstanding shares of White Corporation for $498,000.From Black's perspective,White was a FVTPL investment.The fair value of Black's investment was $520,000 at December 31,2004.
On January 1,2005,Black purchased an additional 30 per cent of White's shares for $750,000.The second share purchase allows Black to exert significant influence over White There was an acquisition differential of 30 per cent on the date of acquisition.
During the two years White reported the following results:  
Required:
With respect to this investment,prepare Black's journal entries for both 2004 and 2005.

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The Answer of The following information pertains to questions 
X purchased 30% of Y of Y on January 1,2002 for $300,000.On the date,Y's net assets of Y had a book value of $500,000.Any Acquisition Differential on the acquisition date is to be allocated to Y's Equipment,which had a remaining useful life of 5 years from the date of acquisition.Y paid dividends of $20,000 in each year.
Y's income statements for 2002 and 2003 showed the following:
-On January 1,2004,Black Corporation purchased 15 per cent of the outstanding shares of White Corporation for $498,000.From Black's perspective,White was a FVTPL investment.The fair value of Black's investment was $520,000 at December 31,2004.
On January 1,2005,Black purchased an additional 30 per cent of White's shares for $750,000.The second share purchase allows Black to exert significant influence over White There was an acquisition differential of 30 per cent on the date of acquisition.
During the two years White reported the following results:  
Required:
With respect to this investment,prepare Black's journal entries for both 2004 and 2005.

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