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4 . On January 1 , 2 0 2 3 , Mojito Corporation purchased 2 0 % ( 2 0 , 0 0 0 shares
On January Mojito Corporation purchased shares of the outstanding stock of Dulcinea Corporation for $ During Dulcinea Corporation paid total dividends of $ and earned $ in net income. At the end of Dulcinea Corporations stock had a fair market value of $
Required:
a Prepare the journal entries that Mojito would make during assuming that they do NOT have significant influence over Dulcinea as a result of their stock ownership ie fair value method
b Prepare the journal entries that Mojito would make during assuming that they do have significant influence over Dulcinea as a result of their stock ownership ie equity method
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