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(12) Haider Design acquired 30% of the outstanding common stock of Waleed Company on January 1, 2020, by paying $800,000 for the 45,000 shares. Waleed
(12)Haider Design acquired 30% of the outstanding common stock of Waleed Company on January 1, 2020, by paying $800,000 for the 45,000 shares. Waleed declared and paid $0.30 per share cash dividends on March 15, June 15, September 15, and December 15, 2020. Quayle reported net income of $320,000 for the year. At December 31, 2020, the market price of Waleed common stock was $24 per share.
Instructions
Prepare the journal entries for Haider Design for 2020 assuming Haider Design cannot exercise significant influence over Waleed.
(12)Haider Design acquired 30% of the outstanding common stock of Waleed Company on January 1, 2020, by paying $800,000 for the 45,000 shares. Waleed declared and paid $0.30 per share cash dividends on March 15, June 15, September 15, and December 15, 2020. Quayle reported net income of $320,000 for the year. At December 31, 2020, the market price of Waleed common stock was $24 per share.
Instructions
Prepare the journal entries for Haider Design for 2020 assuming Haider Design cannot exercise significant influence over Waleed.
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