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I'm strugling in this question can someone solve this for me please. Juniper Inc. purchased 30,000 of the 90,000 outstanding shares of Yew for $8.70
I'm strugling in this question can someone solve this for me please.
Juniper Inc. purchased 30,000 of the 90,000 outstanding shares of Yew for $8.70 per share on January 1 of Year 7 . The Juniper Inc. controller believes that their company has significant interest over Yew. During Year 7, Yew earned a net income of $90,000 and paid dividends of $42,000. On December 31 of Year 7, Yew shares were trading for $9.23 During Year 8, Yew earned a net income of $111,000 and paid dividends of $54,000. On December 31 of Year 8 , Yew shares were trading for $9.88. Required Complete the following with the details provided above. A. Assuming that Juniper Inc. has significant influence over Yew, prepare all the necessary journal entries for Year 7. (10 marks) B. Prepare a schedule that shows all changes to the investment in the Yew account, and include the Year 8 ending balance of the investment account. ( 10 marks) Step by Step Solution
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