On January 1, Lyon Corporation purchased a 25 equity investment in Shane Corporation for $150,000 At December 31, Shane declared and paid a $80,000 cash dividend and reported net income of $380,000 Instructions (a) Journalize the transactions (b) Determine the amount to be reported as an investment...

a Jan 1 Stock Investments 150000 Cash 150000 Dec 31 Cash 80000 X 25 2000 ...

On January 1, Lyon Corporation purchased a 25% equity investment in Shane Corporation for $150,000. At December

Question:

On January 1, Lyon purchased a 25% equity investment in Shane for $150,000. At December 31, Shane declared and paid a $80,000 cash and reported net income of $380,000.
Instructions
(a) Journalize the transactions.
(b) Determine the amount to be reported as an investment in Shane stock at December 31
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...