On January 1, 2017, the Z Corporation acquired a 20% interest in D Company by purchasing 4,800 shares of its
24,000 outstanding shares of common stock. The acquisition price was $30 per share. On the date of purchase, D Company's net assets were as follows:
During 2017, D Company earned income of $70,000 and paid dividends of $18,000. The depreciable assets have a ten-year remaining life and no residual value.
Required:
Prepare all of the journal entries on Z Corporation's books to record the acquisition and subsequent events in 2017 related to the investment in D Company.

Question

On January 1, 2017, the Z Corporation acquired a 20% interest in D Company by purchasing 4,800 shares of its
24,000 outstanding shares of common stock. The acquisition price was $30 per share. On the date of purchase, D Company's net assets were as follows: 
 During 2017, D Company earned income of $70,000 and paid dividends of $18,000. The depreciable assets have a ten-year remaining life and no residual value.
Required:
Prepare all of the journal entries on Z Corporation's books to record the acquisition and subsequent events in 2017 related to the investment in D Company.

Quizplus · Accepted Answer

The Answer of On January 1, 2017, the Z Corporation acquired a 20% interest in D Company by purchasing 4,800 shares of its
24,000 outstanding shares of common stock. The acquisition price was $30 per share. On the date of purchase, D Company's net assets were as follows: 
 During 2017, D Company earned income of $70,000 and paid dividends of $18,000. The depreciable assets have a ten-year remaining life and no residual value.
Required:
Prepare all of the journal entries on Z Corporation's books to record the acquisition and subsequent events in 2017 related to the investment in D Company.

On January 1, 2017, the Z Corporation Acquired a 20