Question
Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, 20Y5. The following transactions relate to securities acquired
Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, 20Y5. The following transactions relate to securities acquired by Forte Inc., which has a fiscal year ending on December 31, 20Y5:
Jan. 10 Purchased an influential interest in Imboden Inc. for $770,000 by purchasing
97,000 shares directly from the estate of the founder of Imboden Inc. There are
325,000 shares of Imboden Inc. stock outstanding.
Dec. 31 Received $65,000 of cash dividends on Imboden Inc. stock. Imboden Inc.
reported net income of $450,000 in 20Y6. Forte Inc. uses an equity method of
accounting for its investment in Imboden Inc.
Journalize the entries to record these transactions.
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