A Corp.and B Corp.formed a joint venture called C Corp.on January 1,2010.On that date,B Corp.invested assets with a fair value of $700,000 for its 65% stake in C Corp.A Corp.contributed machinery and equipment with a book value of $200,000 and a fair value of $800,000 as well as $400,000 in cash in return for its 35% stake in the venture.
On December 31,2010,C Corp.reported a net income of $300,000 and declared dividends in the amount of $50,000.The machinery and equipment are estimated to have an estimated useful life of 10 years.
-Prepare A Corp.'s equity method journal entries for 2010,assuming that the assets donated by B Corp did not include cash.

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The Answer of A Corp.and B Corp.formed a joint venture called C Corp.on January 1,2010.On that date,B Corp.invested assets with a fair value of $700,000 for its 65% stake in C Corp.A Corp.contributed machinery and equipment with a book value of $200,000 and a fair value of $800,000 as well as $400,000 in cash in return for its 35% stake in the venture.
On December 31,2010,C Corp.reported a net income of $300,000 and declared dividends in the amount of $50,000.The machinery and equipment are estimated to have an estimated useful life of 10 years.
-Prepare A Corp.'s equity method journal entries for 2010,assuming that the assets donated by B Corp did not include cash.

A CorpAnd B Corp