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Entries for equity investments: 20%-50% ownership On January 6, 2018, Bulldog Co. purchased 25% of the outstanding common stock of $160,000. Gator Co. paid total
Entries for equity investments: 20%-50% ownership On January 6, 2018, Bulldog Co. purchased 25% of the outstanding common stock of $160,000. Gator Co. paid total dividends of $20,800 to all shareholders on June 30, 20YS. Gator had a net loss of $30,400 for 20YS. 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 00 b. Compute the balance of Investment in Gator Co. Stock on December 31, 20YS. 13 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 method uses market price information value of the investee resulting from earnings and dividend distributions. The to value the investment in the investee
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