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4. On 01/01/20 Alex Inc. purchases 25,000 shares of the 100,000 outstanding common shares of Brad Co for $280,000. During 2020BradCo. had $120,000 in Net
4. On 01/01/20 Alex Inc. purchases 25,000 shares of the 100,000 outstanding common shares of Brad Co for $280,000. During 2020BradCo. had $120,000 in Net Income, and paid cash dividends of $40,000. At the end of 2020 , Brad Co had a fair value of $300,000. Assume a $0 balance in the Fair Value Adjustment account. a. Record all of Alex's 2020 journal entries for this investment. b. Record all of Alex's 2020 journal entries for this investment assuming that it owns 25,000 out of 200,000 outstanding shares of common stock
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