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Intermediate Accounting
On January 3, 2019, Martin Company purchased for $500,000 cash

On January 3, 2019, Martin Company purchased for $500,000 cash a 10% interest in Renner Corp. The

Question:

On January 3, 2019, Martin Company purchased for $500,000 cash a 10% interest in Renner Corp. The fair value of Martin?s investment in Renner securities is as follows: December 31, 2019, $560,000, and December 31, 2020, $515,000. On January 2, 2021, Martin purchased an additional 30% of Renner?s stock for $1,545,000 cash. During 2019, 2020, and 2021, the following occurred.

Instructions

On the books of Martin Company, prepare all journal entries in 2019, 2020, and 2021 that relate to its investment in Renner Corp., reflecting the data above and a change from the fair value method to the equity method.

Transcribed Image Text:

Dividends Paid by Renner to Martin Renner Net Income 2019 $350,000 450,000 $15,000 2020 2021 20,000 550,000 70,000

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Equity Investments Cash To record the purchase of a 10 interest in Renner Corp Cash January 3 2019 D...View the full answer

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Intermediate Accounting

ISBN: 978-1119503668

17th edition

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

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Question Posted: Dec 10, 2019 11:47 AM

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