1. Goodwill or gains on the bargain purchase 4.

Kuma's equity in Sachi's net assets at Dec

Investment Cost (40%) $ 600,000.00 Sachi's stockholders' equity 1 January

Less Common Stock (40%) $ (400,000.00) Net Income
Goodwill $ 200,000.00 Less Dividends
Sachi's stockholders' equity 31 December
2. Income from Sachi for 2016 Percent Acquired
Kuma's equity in Sachi's net assets
Net Income $ 200,000.00
Percent Acquired 40% The amount of discontinued operations loss
Period (9/12) 0.75
Income from Sachi 2016 $ 60,000.00 Loss of discontinued operations
Percent Acquired
3. Investment in Sachi account balance at December 31, 2016

Original Investment April 1, 2016 $ 600,000.00

40% of Sachi's Net Income 2016] $ 60,000.00
Less 40% of Divident Jun, Sept, and Dec $ (36,000.00)
Investment in Sachi Account Balance $ 624,000.00
 equity in Sachi's net assets at December 31 2016

ockholders' equity 1 January $ 1,000,000.00

$ 200,000.00
$ (120,000.00)
ockholders' equity 31 December $ 1,080,000.00
40%
quity in Sachi's net assets $ 432,000.00

nt of discontinued operations loss that Kuma will show on Dec 31

scontinued operations $ 50,000.00

40%
$ 20,000.00
Pietersz, Vanessa Patricia Heny

2016 2017

1-Jan Investment in Sheon $ 200,000.00 1-Jan Investment in Sheon

Cash $ 200,000.00

1-Mar Cash $ 2,500.00 1-Mar Cash

Dividend income $ 2,500.00

1-Sep Cash $ 2,500.00 1-Sep Cash

Dividend Income $ 2,500.00

31-Dec No entry 31-Dec Investment in Sheon

Investment in Sheon $ 1,000,000.00
Cash $ 1,000,000.00

$ 20,000.00
Dividend income $ 20,000.00

$ 20,000.00
Dividend Income $ 20,000.00

Investment in Sheon $ 120,000.00

Income from Sheon $ 120,000.00