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ii. Prepare the necessary journals for the year ended December 31 for Kevin S.A. in respect of its investment in Paris Holdings S.A. Kevin S.A.
ii. Prepare the necessary journals for the year ended December 31 for Kevin S.A. in respect of its investment in Paris Holdings S.A.
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Kevin S.A. purchased 80,000 shares, 25% of the outstanding shares of Paris Holdings S.A. for 2,500,000 on January 1. Paris Holdings S.A. paid a dividend of 1.25 per share on June 30 of the same year and recorded a net profit after tax of 576,000 for the year ended December 31.
Required:
i. Described what method should Kevin S.A. use to account for its investment in Paris Holdings S.A. Explain your answer.
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