On January 1, 2016, Poplar Company Acquired 80% of the Common

Essay

On January 1, 2016, Poplar Company acquired 80% of the common stock of Sequoia Company for $400,000.On this date, Sequoia had total owners' equity of $400,000.The excess of cost over book value was due to a patent with remaining life of 10 years.Poplar adopted the simple equity method to account for its investment in Sequoia.
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Sequoia's income for the three years 2016 through 2019 is $80,000, $60,000, and $100,000 respectively.All income is earned evenly throughout the year; Sub has paid no dividends.
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On July 1, 2019, Poplar Company sold 10% of the total stock of Sequoia for $70,000, reducing its investment percentage to 70%.Prepare Poplar's general journal entries for 2019.