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Assuming that X Company purchases a 25% interest in Y company, journalize the following transactions for X Company under equity method a. On january 1,
Assuming that X Company purchases a 25% interest in Y company, journalize the following transactions for X Company under equity method
a. On january 1, 2012, x Company acquired 60,000 shares (25% of Mini Company common stock at a cost of $10 per share.
b. For the year 2012, Y Company reported net income of $300,000
c. At December 31, 2012, Y Company shares have a fair value of $13 per share.
d. On January 25, 2013, Y Company announced and paid a cash dividend of $100,000
e. For the year 2013, Y Company reported a net loss of $60, 000.
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