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(a) Sandhill Inc. acquired 10% of the 409,000 shares of common stock of Schuberger Corporation at a total cost of $15 per share on June
(a) | Sandhill Inc. acquired 10% of the 409,000 shares of common stock of Schuberger Corporation at a total cost of $15 per share on June 17, 2020. On September 3, Schuberger declared and paid a $109,000 dividend. On December 31, Schuberger reported net income of $509,000 for the year. | |
(b) | Whispering Corporation obtained significant influence over Hunsaker Company by buying 30% of Hunsakers 109,000 outstanding shares of common stock at a cost of $18 per share on January 1, 2020. On May 15, Hunsaker declared and paid a cash dividend of $109,000. On December 31, Hunsaker reported net income of $209,000 for the year. |
Prepare all necessary journal entries for 2020 for (a) Sandhill and (b) Whispering
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