Question
Agee Corporation acquired a 40% interest in Trent Company on January 1, 2018, for $700,000. At that time, Trent had 100,000 shares of its $1
Agee Corporation acquired a 40% interest in Trent Company on January 1, 2018, for $700,000.
At that time, Trent had 100,000 shares of its $1 par common stock issued and outstanding. During
2018, Trent paid cash dividends of $240,000. Trent's net income for 2018 was $500,000.
The market price of Trent Company stock on 12/31/18 is $25 per share.
- Record the journal entry for the investment made on Jan 1, 2018?
- Record the journal entry for investment income?
- Record the journal entry for receipt of cash dividends?
d. What is the balance in Agees equity investment account at the end of 2018?
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Financial Accounting Theory And Analysis Text And Cases
Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey
14th Edition
1119881226, 978-1119881223
