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At a total cost of $2,086,000, Abbott Corporation acquired 140,000 shares of Costello Corp. common stock as a long-term investment. Abbott Corporation uses the equity
At a total cost of $2,086,000, Abbott Corporation acquired 140,000 shares of Costello Corp. common stock as a long-term investment. Abbott Corporation uses the equity method of accounting for this investment. Costello Corp. has 400,000 shares of common stock outstanding, including the shares acquired by Abbott Corporation.
Journalize the entries by Abbott Corporation to record the following information:
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