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Exercise 17-17 On January 1, 2020, Indigo Corporation purchased 20% of the common shares of Sweet Company for $206,000. During the year, Sweet earned net
Exercise 17-17 On January 1, 2020, Indigo Corporation purchased 20% of the common shares of Sweet Company for $206,000. During the year, Sweet earned net income of $94,000 and paid dividends of $23,500. Prepare the entries for Indigo to record the purchase and any additional entries related to this investment in Sweet Company in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit (To record purchase of stock.) (To record receipt of dividends.) (To record revenue.)
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