Week 15 & 16 Homework? Help Save & Exit Submit Saved Check my work At the date o

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Week 15 & 16 Homework? Help Save & Exit Submit Saved Check my work At the date of purchase, the book value of Vancouver's net assets was $775 million. The book values and fair values for all balance sheet items were the same except for inventory and plant facilities. The fair value exceeded book value by $5 million for the inventory and by $20 million for the plant facilities 10 The estimated useful life of the plant facilities is 16 years. All inventory acquired was sold during 2018 polnts Vancouver reported net income of $140 million for the year ended December 31, 2018. Vancouver paid a cash dividend of $30 million Required 1. Prepare all appropriate journal entries related to the investment during 2018 2. What amount should Northwest report as its income from its investment in Vancouver for the year ended December 31, 2018? 3. What amount should Northwest report in its balance sheet as its investment in Vancouver? 4. What should Northwest report in its statement of cash flows regarding its investment in Vancouver? eBook Print Complete this question by entering your answers in the tabs below References Req 1 Req 2 and 3 Req 4 Prepare all appropriate journal entries related to the investment during 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet 2 4 Record the entry related to the purchase Note: Enter debits before credits Event General Journal Debit Credit nvestment in Vancouver T&M; shares Mc Graw

Explanation / Answer

3)Firm Northwest Paperboard Company’s “Investment in Vancouver Timber and Milling, Inc.” account now has a balance of

($400+$56-$12) i.e $444. by the end of 2018

4)

Using equity method 1) journal entries Investment in Vancouver Timber and Milling, Inc. $400 To Cash $400 To Record the acquisition of Vancouver Timber and Milling, Inc 2) Investment in Vancouver Timber and Milling, Inc. $56 To Equity in Earnings of Affiliate (140X40%) $56 To record Northwest Paperboard Company’s share in the income earned by Vancouver Timber and Milling, Inc Cash ($30*40%)      $12 To Investment inVancouver Timber and Milling, Inc. $12 To record dividends received from ABC

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