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4 As a long - term investment, Painters' Equipment Company purchased 2 0 % of AMC Supplies Incorporated's 5 0 0 , 0 0 0

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As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Incorporated's 500,000 shares for $580,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC's net assets were equal. During the year, AMC earned net income of $350,000 and distributed cash dividends of 25 cents per share. At year-end, the fair value of the shares is $615,000.
Part 2 of 2
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Journal entry worksheet
Record the cash dividend of 25 cents per share.
Note: Enter debits before credits.
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2. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Note: Enter debits before credits. Record any necessary year-end adjusting journal entry when the fair value of the shares held are $615,000 at year-end. Record the cash dividend of 25 cents per share.

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