4) On January 1, Austin Corporation purchased 30% of the outstanding voting common
stock of San Marcos Industries common stock for $270,000 cash. On that date, the
book value and fair value of the net assets of San Marcos Industries were $900,000.
On June 30, San Marcos paid cash dividends of $20,000 to its shareholders. San
Marcos' net income as of December 31 was $120,000. The fair value of the shares on
December 31 was $300,000.
Prepare the journal entries necessary to record the above transactions on Austin
Corporation's books during the year.
Jan 1
June 30
Dec 31
5) Mega Corporatio
pension cost for them