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I need some assistance in figuring these out please. B1-37 Accounting for Equity Investments Obj. 3 What method of accounting is used for investments between
I need some assistance in figuring these out please.
B1-37 Accounting for Equity Investments Obj. 3 What method of accounting is used for investments between 20% and 50% of the investee's outstanding common stock? B1-39 Reporting Equity Investments; 20%- 50% Ownership Obj. 3 Pascal Inc. acquired 40% of the outstanding common stock of Andres Corporation for $1,200,000. During the year, Andres Corporation reported net income of $220,000 and paid dividends of $45,000. Explain how Pascal Inc. would report its investment in Andres Corporation on its year-end balance sheet (classification and amount). R1.40 Tournalizina Fanitu B1-41 Journalizing Equity Investment Transactions; 20%- 50% Ownership Obj. 3 On January 2, 20Y4, Whitworth Company acquired 40% of the outstanding stock of Aloof Company for $340,000. For the year ended December 31, 2014, Aloof Company earned income of $180,000 and paid dividends of $10,000. On January 31, 20Y5, Whitworth Company sold all of its investment in Aloof Company stock for $405,000. Journalize the entries for Whitworth Company for (a) the purchase of the stock, (b) the share of Aloof income, (c) the dividends received from Aloof Obj. 3 On January 2, 20Y4, Whitworth Company acquired 40% of the outstanding stock of Aloof Company for $340,000. For the year ended December 31, 20Y4, Aloof Company earned income of $180,000 and paid dividends of $10,000. On January 31, 20Y5, Whitworth Company sold all of its investment in Aloof Company stock for $405,000. Journalize the entries for Whitworth Company for (a) the purchase of the stock, (b) the share of Aloof income, (c) the dividends received from Aloof Company, and (d) the sale of the Aloof Company stock Step by Step Solution
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