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Entries for equity investments: 20%-50% ownership On January 6, 2018, Bulldog Co. purchased 26% of the outstanding common stock of $183,000. Gator Co. paid
Entries for equity investments: 20%-50% ownership On January 6, 2018, Bulldog Co. purchased 26% of the outstanding common stock of $183,000. Gator Co. paid total dividends of $20,100 to all shareholders on June 30, 2018. Gator had a net loss of $36,600 for 2018. a. Journalize Bulldog's purchase of the stock, receipt of the dividends, and the adjusting entry for the equity loss in Gator Co. stock. Jan. 6- Purchase June 30 - Dividend Dec. 31-Equity Loss b. Compute the balance of Investment in Gator Co. Stock on December 31, 2018. c. How does valuing an investment under the equity method differ from valuing an investment at fair value? Under the method, the investor will record their proportionate share of the net increase (or decrease) of the book value of the method uses market price information to value the investment investee resulting from earnings and dividend distributions. The the investee.
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