On January 1, 2018, Jolley Corp.paid $250,000 for 25% of the voting common stock of Tige Co.On that date, the book value of Tige was $850,000.A building with a carrying value of $160,000 was actually worth $220,000.The building had a remaining life of twenty years.Tige owned a trademark valued at $90,000 over cost that was to be amortized over 20 years.
During 2018, Tige sold to Jolley inventory costing $60,000, at a markup of 50% on cost.At the end of the year, Jolley still owned some of these goods with an intra-entity selling price of $33,000.Jolly uses a perpetual inventory system.
Tige reported net income of $200,000 during 2018.This amount included a gain of $35,000.Tige paid dividends totaling $40,000.
Required:
Prepare all of Jolley's journal entries for 2018 in relation to Tige Co.Assume the equity method is appropriate for use.

Question

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The Answer of On January 1, 2018, Jolley Corp.paid $250,000 for 25% of the voting common stock of Tige Co.On that date, the book value of Tige was $850,000.A building with a carrying value of $160,000 was actually worth $220,000.The building had a remaining life of twenty years.Tige owned a trademark valued at $90,000 over cost that was to be amortized over 20 years.
During 2018, Tige sold to Jolley inventory costing $60,000, at a markup of 50% on cost.At the end of the year, Jolley still owned some of these goods with an intra-entity selling price of $33,000.Jolly uses a perpetual inventory system.
Tige reported net income of $200,000 during 2018.This amount included a gain of $35,000.Tige paid dividends totaling $40,000.
Required:
Prepare all of Jolley's journal entries for 2018 in relation to Tige Co.Assume the equity method is appropriate for use.