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II. PROBLEM On January 1, 2018, Bleach Company acquires a 30% interest in White Company...

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II. PROBLEM On January 1, 2018, Bleach Company acquires a 30% interest in White Company by purchasing 6,000 shares of its 20,000 common stock for $16 per share. On January 1, 2018, the net assets of White Company were as follows: Nondepreciable assets Depreciable assets (5-year remaining life) Book Value Eair Value S 60,000 60,000 noooo -240.000 $260,000 $300,000 Liabilities 20.000 $ 20,000 During 2018, White reported net income of $200,000 and paid cash dividends of $80,000. Bleach Company amortizes intangibles over a 20-year life. Required Prepare alljournal entries on Bleach's books to record the acquisition, dividends, and income from the investment in White Company ANS: Jan. 1 Dec. 31 31 31 (Deduct 4 points for each incorrect answer)

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