2. Prep pays $87,000 for 80% interest in Snap on January 1, when Snap stockholders'...
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2. Prep pays $87,000 for 80% interest in Snap on January 1, when Snap stockholders' equity consists of $60,000 capital stock and $30,000 retained earnings. The $15,000 excess of investment cost is allocated to patents with 15 years amortization. During the year: Net income $25,000, Dividends $10,000 Please prepare the journal entry b.Calculate the MI during the acquisition c. How much the investment at year end? d. What is Snap equity by end of the year
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