Solution for QID #62599: Venus Company acquired a 45% interest in the voting stock Ze | StudyHelpMe

Venus Company acquired a 45% interest in the voting stock Zeus Company for $ 530,000. on January 1, 2009 when Zeus's stockholder's equity consisted of capital stock of $800,00 and retained earnings of $400,000. At the time of Venus investment, Zeus assets and liabilities were recorded at their fair values, except for inventories that were undervalued      by $60,000 (subsequently sold COGS to be charged) and a building with a 10-year remaining useful life that was overvalued by $100,000. Zeus has income for 2009 of $ 260,000 and pays dividends of $80,000.                  Required: 1)      What is the amount of goodwill if any that Venus is paying? (2 pts) 2)       Provide all journal entries for Venus Company for the year including the purchase of the investment on January 1, 2009 using Equity method (6 pts) 3)      What is the investment in Zeus account balance at December 31 on Venus books?  (2 pts) 4)      What is the amount of Venus share of Zeus net assets at December 31, 2009? (2pts)