Chapter 1 - problem 14

Equity rollforward:
1/1/08 1 ,700
+ NI 240
- Div -90
1/1/09 1,850

1/1/08 Acquisition:
Consid given 210
BV 1700 x .1 170
XS 40
Allocation:
Land 100 x .1 10 - no amortization
trademark 30 / 10yrs = 3 per year amort

1/1/09 Acquistion:
Consid given 600
BV 1850 x .3 555
XS 45
Allocation:
Land 120 x .3 360 - no amortization
trademark 9 / 9yrs = 1 per year amort

2008 Adjustment:
Equity Inv Inc: 240 x .1 = 24 - amort 3 = 21
Div: 90 x .1 = 9
So, 21 - 9 = 12 for the adjustment (DR Investment CR RE)

2009 other entries:
Equity Inv Inc: 300 x .4 = 120 less amort 4 = 116 (DR investment CR Eq Inv Income)
Dividends: 110 x .4 = 44 (DR Cash CR Investment)