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Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng
Edition 11ISBN: 978-0538480284Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng
Edition 11ISBN: 978-0538480284 Exercise 39
Compare alternative methods for recording income. Clark Company acquires an 80% interest in Hebron Company common stock for $400,000 cash on January 1, 2011. At that time, Hebron Company has the following balance sheet: 
Prepare a determination and distribution of excess schedule for the investment in Hebron Company (a value analysis is not needed). Prepare journal entries that Clark Company would make on its books to record income earned and/or dividends received on its investment in Hebron Company during 2011 and 2012 under the following methods: simple equity, sophisticated equity, and cost.
Prepare a determination and distribution of excess schedule for the investment in Hebron Company (a value analysis is not needed). Prepare journal entries that Clark Company would make on its books to record income earned and/or dividends received on its investment in Hebron Company during 2011 and 2012 under the following methods: simple equity, sophisticated equity, and cost.
Explanation
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The following are the adjustments:
It is...
Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng
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