Penn Corporation purchased for $300,000 a 25% interest in Teller, Inc. This investment enables Penn to exert

Question:

Penn purchased for $300,000 a 25% interest in Teller, Inc. This investment enables Penn to exert significant influence over Teller. During the year Teller earned net income of $180,000 and paid dividends of $60,000. Prepare Penn’s journal entries related to this investment.

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...