Julip Corporation purchased a 25% interest in Krov Corporation on January 2, 2020, for $1,000. At that

Question:

Julip Corporation purchased a 25% interest in Krov Corporation on January 2, 2020, for $1,000. At that time, the carrying amount of Krov’s net assets was $3,600. Any excess of the cost of the investment over Julip’s share of Krov’s carrying amount can be attributed to unrecorded intangibles with a useful life of 20 years. Krov declared and paid a dividend of $12 and reported net income of $60 for its year ended December 31, 2020. Prepare Julip’s 2020 entries to record all transactions and events related to the investment in its associate. Assume that Julip is a publicly accountable enterprise that applies IFRS.

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...

Fantastic news! We've Found the answer you've been seeking!