On July 1, 20X8, Fair Logic Corporation acquires 75 percent of Integrated Systems Inc. common stock for its underlying book value. At the time of acquisition, the fair value of the noncontrolling interest is equal to its proportionate share of book value of Integrated Systems. On January 1, 20X8 Integrated reported common stock of $100,000 and retained earnings of $130,000. For the year 20X8, Integrated reports the following items:
Fair Logic uses the equity method in accounting for this investment.

-Based on the preceding information,what journal entry would Fair Logic make to record equity method income for the year?

Question

On July 1, 20X8, Fair Logic Corporation acquires 75 percent of Integrated Systems Inc. common stock for its underlying book value. At the time of acquisition, the fair value of the noncontrolling interest is equal to its proportionate share of book value of Integrated Systems. On January 1, 20X8 Integrated reported common stock of $100,000 and retained earnings of $130,000. For the year 20X8, Integrated reports the following items:
Fair Logic uses the equity method in accounting for this investment.
 
-Based on the preceding information,what journal entry would Fair Logic make to record equity method income for the year?

Quizplus · Accepted Answer

The Answer of On July 1, 20X8, Fair Logic Corporation acquires 75 percent of Integrated Systems Inc. common stock for its underlying book value. At the time of acquisition, the fair value of the noncontrolling interest is equal to its proportionate share of book value of Integrated Systems. On January 1, 20X8 Integrated reported common stock of $100,000 and retained earnings of $130,000. For the year 20X8, Integrated reports the following items:
Fair Logic uses the equity method in accounting for this investment.
 
-Based on the preceding information,what journal entry would Fair Logic make to record equity method income for the year?

On July 1, 20X8, Fair Logic Corporation Acquires 75 Percent