Amazon.com purchased 10,000 shares of Kroger common shares at $25 per share on October 1, 2018. On October 25, 2018 Kroger paid dividends of $0.25 per share to all common shareholders. On December 31, 2018 Kroger shares traded at $28 per share and Kroger reported $2.00 of earnings per share for 2018.

Required:

1. Provide the journal entry for Amazon.com on October 1, 2018.

2. Provide the journal entry for Amazon.com on October 25, 2018.

(c) If Amazon classifies its investment in Kroger shares as trading securities, prepare the adjusting entry to record the change in fair value on December 31, 2018.

D )If Amazon classifies its investment in Kroger shares as available-for-sale securities, prepare the adjusting entry to record the change in fair value on December 31, 2018.

(e) On March 12, 2019, Amazon sold 2,000 Kroger shares at $30 per share. Prepare the journal entry to record the transaction.

(f) If 10,000 common shares of Kroger represent 25% of all outstanding common shares of Kroger, how should Amazon record the dividends paid by Kroger on October 25, 2018?

(g) Assuming the same facts in (f), provide the adjusting entry for Amazon on Dec 31, 2018.

(h) Assuming the same facts in (f) and (g), sold 1,000 shares of Kroger common at $40 per share on March 12, 2019. Prepare the journal entry to record the transaction.