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Ellis Transport Company acquired 19 million shares of stock in L&K Corporation at $55 per share. They are reported by Ellis at fair value through
Ellis Transport Company acquired 19 million shares of stock in L&K Corporation at $55 per share. They are reported by Ellis at "fair value through net income." Ellis sold 900.000 shares at $58, received a 10% stock dividend, and then later in the year sold another 400,000 shares at $54 Hint There is no entry for the stock dividend, but a new investment per share must be calculated for use later when the shares are sold Required: Prepare journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5.500,000 should be entered as 5.5).)
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