Question
Investor Ltd. paid $140,000 to acquire 40 percent of the common shares of investee Lid. The investment is subject to significant influence. At the end
Investor Ltd. paid $140,000 to acquire 40 percent of the common shares of investee Lid. The investment is subject to significant influence. At the end of the first year, investee Ltd's net income was $100,000 and Investee Ltd declared and paid cash dividends of $140,000 Joumalize Investor Lids (a) purchase of the investment, (b) share of Investee Ltd's net income, (c) receipt of dividends from investee Lid, and (d) sale of all the Investee Ltd shares for $160,000 a Record the journal entry for the sale for the purchase of the investment (Record debits first, then credits. Exclude explanations for journal entries.)
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