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Heritage Ltd. was organized on January 2, 2020. The following investment transactions and events occurred during the following months: 2020 Jan. 6 Heritage paid $576,500

Heritage Ltd. was organized on January 2, 2020. The following investment transactions and events occurred during the following months:

2020
Jan. 6 Heritage paid $576,500 for 50,100 shares (20%) of Port Inc. outstanding common shares.
Apr. 30 Port declared and paid a cash dividend of $1.20 per share.
Dec. 31 Port announced that its profit for 2020 was $490,000. Fair value of the shares was $11.90 per share.
2021
Oct. 15 Port declared and paid a cash dividend of $0.80 per share.
Dec. 31 Port announced that its profit for 2021 was $640,000. Fair value of the shares was $12.28 per share.
2022
Jan. 5 Heritage sold all of its investment in Port for $683,000 cash.

Assume that Heritage has a significant influence over Port with its 20% share.

1. Prepare the entries to record the preceding transactions in Heritages books.

a. Record the purchase in strategic investment.

b. Record the dividends received from strategic investment.

c. Record the share of profits of equity investment.

d.Record the dividends received in equity investment.

e.Record the share in profits of equity investment

f. Record sale in strategic investment.

2. Calculate the carrying value per share of Heritages investment as reflected in the investment account on January 4, 2022. (Round your answer to 2 decimal places.)

Carrying valve per share. __________?

3. Calculate the change in Heritages equity from January 2, 2020, through January 5, 2022, resulting from its investment in Port.

equity _____ by ______

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