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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
17.   Journal entries to apply the equity method of accounting for investments in securities. Wood Corporation made three long-term intercorporate investments on January 2. Data relating to these investments for the year appear next.
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 |
Carrying |
 |
|||
Value and |
|||||
Fair Value of |
 |
Net |
Dividends |
||
Identifiable |
 |
Income |
Declared |
||
 |
Percentage |
Net Assets |
Acquisition |
(Loss) for |
During |
Company |
Acquired |
on January 2 |
Cost |
the Year |
the Year |
Knox Corporation . . . . . . |
50% |
$700,000 |
$350,000 |
$ 70,000 |
$30,000 |
Vachi Corporation . . . . . . |
30 |
520,000 |
196,000 |
40,000 |
15,000 |
Snow Corporation . . . . . . |
20 |
400,000 |
100,000 |
(24,000) |
— |
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Give the journal entries to record the acquisition of these investments and to apply the equity method during the year. There are no goodwill  impairments.
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