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On January 1, 2018, Regal Entertainment acquired a 40% interest in Cineworld Inc. for $250,000. O...

On January 1, 2018, Regal Entertainment acquired a 40% interest in Cineworld Inc. for $250,000. On that date, Cineworlds bal

On January 1, 2018, Regal Entertainment acquired a 40% interest in Cineworld Inc. for $250,000. On that date, Cineworld's balance sheet disclosed net assets of $430,000. During 2018, Cineworld reported net ncome of $100,000 and paid cash dividends of $30,000. Any excess cost over fair value is attributable to an unamortized trademark with a 20-year remaining life. Required 1. Assume that Regal accounts for its investment in Cineworld using the equity method. Prepare 2. Assume that Regal accounts for its investment in Cineworld using the partial equity method 3. Assume that Regal accounts for its investment in Cineworld using the initial value method. all journal entries that Regal would record for its investment during 2018. Prepare all journal entries that Regal would record for its investment during 2018. Prepare all journal entries that Regal would record for its investment during 2018.
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Acquistion Analysis Acquisition price paid by Regal Entertainment Total Fair value of Cineworld (250,000 / 40%) Less: Book va

1) Equity Method No General Journal Debit Credit Investment in Cineworld Cash (to record acquisition of cineworld) 250,000 25

2) Partial Equity Method No General Journal Debit Credit Investment in Cineworld Cash (to record acquisition of cineworld) 25

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