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AAA acquired 30% of BBB's voting stock on January 1, 2021 for $1,000,000. During 2021, BBB earned $400,000 and paid dividends of $250,000. AAAs 30%
AAA acquired 30% of BBB's voting stock on January 1, 2021 for $1,000,000. During 2021, BBB earned $400,000 and paid dividends of $250,000. AAAs 30% interest gives the ability to exercise significant influence over BBBs operating and financial policies. During 2022, BBB earned $500,000 and paid cash dividends of $150,000 on April 1 and $150,000 on October 1. On July 1, 2022, AAA sold half of its stock in BBB for $660,000 cash. Prepare adjusting journal entries, if any, to recognize the sales of this investment on July 1, 2022.
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