1.Record the journal entry Jimmer Corp. recorded when they purchased Laetner's equity.

2.Record the journal entries to account for Laetner's income, dividends, and adjusting entries.

3.Assume Laetner sold the asset for 2,200,000 on January 1, 2022. Record Jimmer Corp.'s journal entry associated with the sale of Laetner Corp.'s stock.

On January 1, 2021, Jimmer Corp. purchased 25% of Laetner Corp.'s common stock for $2,000,000. Below is information about the book value and fair value of Laetner's assets: 01/01/21 01/01/21 Book Value Fair Value Building (5 year remaining useful life) $2,000,000 $3,000,000 Inventory $ 800,000 $1,000,000 Land $ 1,200,000 $2,000,000 Other Assets $1,000,000 $1,000,000 Laetner's Income Laetner's 2021 dividends $1,000,000 $ 200,000