On January 1, 2025, Pennington Corporation purchased 30% of the common shares of Edwards Company for $180,000.

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On January 1, 2025, Pennington Corporation purchased 30% of the common shares of Edwards Company for $180,000. During the year, Edwards earned net income of $80,000 and paid dividends of $20,000.

Instructions

Prepare the entries for Pennington to record the purchase and any additional entries related to this investment in Edwards Company in 2025.

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Intermediate Accounting

ISBN: 9781119790976

18th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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Question Posted: Jun 25, 2023 01:12 AM

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On January 1, 2025, Pennington Corporation purchased 30% of the common shares of Edwards Company for $180,000.

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Equity Investment Edwards Co Cash ...View the full answer

Intermediate Accounting

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